JPMorgan Chase & Co.'s (JPM) record $13 billion settlement with the U.S. government over past mortgage practices is undermining the current market, according to BlackRock Inc. (BLK).
“Washington has a public policy goal of reducing the role that the government plays in the housing-finance market, and at the same time we now have a series of settlements where no investors were at the table and where money toward the settlements may come from investors’ pockets,” said Barbara Novick, vice chairman of BlackRock. “It discourages the allocation of private capital to mortgage credit.”
