LONDON, January 25, 2017 /PRNewswire/ --
BlackRock Inc, one of the world's biggest asset management firms, announced on Thursday they had taken on former Chancellor of the Exchequer George Osborne, who will advise the company on major asset purchases.
Following the UK's shock vote to leave the European Union, Osborne was ousted from his position having been the youngest politician to hold the famous briefcase. Osborne's appointment back in 2010 was part of a Conservative Party move to drive forward austerity in an effort to drag the country out of the hole created by the global financial crisis of the previous years.
Stuart Poulson, Head of Corporate Trading at CITIC Tokyo International was surprised Osborne will retain his standing as a Member of Parliament while simultaneously working with BlackRock part-time as an investment consultant. Stuart Poulson noted, "With this dual position a conflict of interest could arise and it will be up to regulators to decide whether he has abused his influence."
BlackRock shareholders have been distressed by the company's recent research reports for global investments. James Richards, Head of Mergers and Acquisitions at CITIC Tokyo International, has raised concerns that financial returns may take a significant hit this year unless a change in strategy is quickly formulated.
After the Brexit vote added further stress to the financial markets, Osborne had resigned. In his new advisory role with BlackRock, he will work with the strategic investment team on Chinese economics, Euro zone debt politics and retirement planning.
"We are very much looking forward to working with George and utilizing his talents in a number of different economic and political areas," the statement read.
Government watchdogs will have a keen eye on the appointment and said he would not be allowed to directly lobby the government on behalf of his new employers for another two years. They also stated that privileged information Osborne garnered in his role as Chancellor was not to be used.
"The honorable gentlemen will agree that he will not pursue or be intimately involved with projects together with the British authorities," said a letter from the government's Advisory Committee on Business Appointments.
Osborne had been widely tipped as the next Prime Minister until his fortunes changed with the worldwide economic downturn. His new appointment is just the latest in a string of high-profile job switches to occur in the politico-economic arena. Both, Ben Bernanke, former Fed chairman, and Gordon Brown, former British PM, work in advisory roles for Pacific Investment Management Co (Pimco). Shortly after leaving office, Tony Blair took up a job with U.S. banking giants JPMorgan Chase & Co.
Citigroup announced last week that William Hague, former British Foreign Minister, would act as a senior advisor for the firm.
Source: Mr Stuart Poulson, Head of Corporate Trading, CITIC Tokyo International.
Mr Yamaha Masu,
CITIC Tokyo International,
+81 3 4540 5936,
SOURCE CITIC Tokyo International