Break up Vanguard and Black rock, put a cap in their market influence

Liberty
1

Proposal to Cap Influence of Vanguard and BlackRock in Corporate Governance**

Introduction
In recent years, the growing concentration of ownership within major asset management firms, particularly Vanguard and BlackRock, has raised concerns about their disproportionate influence over public companies. This proposal seeks to address these concerns by establishing a cap on the voting power and influence these firms can exert in corporate governance decisions.
Rationale

  1. Market Concentration: Vanguard and BlackRock together manage trillions in assets, allowing them to accumulate significant stakes in many companies, often leading to uniformity in corporate practices and decision-making.

  2. Corporate Accountability: Excessive influence can stifle diverse viewpoints in corporate governance, potentially undermining the interests of other stakeholders, including minority shareholders, employees, and customers.

  3. Long-term Stability: Limiting the control of these firms may encourage companies to pursue varied strategies that foster innovation and long-term growth rather than focusing on short-term shareholder value.

Proposed Cap Mechanism

  1. Ownership Threshold: Establish a limit on the percentage of total shares a single entity can own in a given company (e.g., no more than 5% of total shares).

  2. Voting Power Limitation: Restrict the voting power of asset managers over companies in which they own shares beyond a certain threshold, ensuring that decisions reflect a broader range of stakeholder interests.

  3. Increased Disclosure: Require greater transparency in the voting activities of asset management firms, making their decisions and the reasons behind them public to promote accountability.

Implementation Plan

  1. Regulatory Framework: Collaborate with regulatory bodies to draft and implement rules governing ownership and voting caps.

  2. Stakeholder Engagement: Involve shareholders, corporate boards, and industry experts in discussions to gather insights and build consensus around the proposal.

  3. Monitoring and Enforcement: Establish mechanisms for monitoring compliance and enforcing penalties for firms that exceed the proposed limits.

Finally
Capping the influence of Vanguard and BlackRock in corporate governance is a necessary step to promote a more equitable and diverse corporate landscape. By adopting this proposal, we aim to foster better corporate practices that benefit all stakeholders and ensure sustainable business practices that contribute positively to society.

This framework can be tailored to various audiences, including policymakers, corporate leaders, and stakeholders, depending on the context in which the proposal is presented.

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Any Corporate entity deemed “too big to fail”, meaning they get all financial upside reward from taking massively leveraged risks with the people’s money while you get none, and then when they fail, we the people have to bail them out otherwise Armageddon. Break them all up so they can fail and never be bailed out by the people again.