Val Katayev Profile picture
Dec 3, 2022 22 tweets 5 min read Read on X
Did you know there is a shadow bank that oversees $21 TRILLION of the world's money?

It has a dominating stake in every major S&P 500 company.

It directs Trillions for the Fed, Central Banks, and Govt Treasuries.

The global financial ecosystem is ruled by this ONE COMPANY. Image
Larry Fink started Blackrock in 1988 after being fired from his previous job.

He had missed an important phone call and lost $100 million for his company. Image
The reason behind Blackrock's astronomical rise is Wall Street's best-kept secret.

It's called Aladdin, a robot supercomputer.
Aladdin oversees $21 Trillion of the global economy.

It directs funds for the US federal reserve, hundreds of banks, and thousands of traders and carries out 250,000 trades every single day.
It gobbles up billions of data points from every market.

Even the most sensitive private information is accessed by Aladdin.
Here's Rick Reider, CIO of Blackrock, explaining Aladdin's utility. Forbes
Every major financial institution, including Goldman Sachs and Vanguard, has come to rely on Aladdin.

40% of all of Wall Street's trades are executed by robots, and Aladdin is by far the leader. Image
Aladdin is the oxygen of the wealth management industry. Blackrock rose to power because of it.

But to stay in control, Blackrock has tilted the game in its favor.
1. Blackrock hires many former government officials into senior roles

- Thomas Donilon (former national security advisor to Obama)
- Dalia Blass from the SEC
- Coryann Stefansson from the Fed
2. Blackrock's top executives work for the government.

Joe Biden has appointed
- Blackrock executive Brindisi as the Head of the National Economic Council
- Larry FInk's Chief of Staff, Adeyemo, as Deputy Treasury Secretary
Since 2004, Blackrock has allegedly hired 64 govt. officials. Source: The American Prospect
3. The government depends on Blackrock's deep access to sensitive data in times of crisis.
In 2009, the Gov asked Blackrock to handle assets of Bear Stearns and AIG, both on the verge of collapsing.

In 2020, the Fed picked Blackrock to handle its emergency asset-purchase.
4. Its ownership structure is circular. It owns shares in companies that own shares in Blackrock.

Let me explain...
The Big 3 of asset management (Blackrock, Vanguard, and State Street) collectively manage $15T.

Blackrock controls about 60% of that shared dominance. Image
Vanguard owns 9% of Blackrock.

Blackrock used to provide $2 trillion worth of liquidity to State Street.

A big chunk of Vanguard and State Street's funds are managed by Aladdin.

They own each other and together control Corporate America and beyond.
Blackrock also has massive equity positions in all major US firms.

It's one of the top 5 shareholders in all the S&P 500 firms you see below. Image
Blackrock is in charge of its own.

1. Data - Aladdin
2. Owners - Circular Ownership
3. Regulation - Blackrock likes the govt and hires from there. The govt. likes Blackrock and hires from it.

And that's how you create and hold on to complete dominance.
If you learned something new, please RETWEET the first tweet:
If you liked this, you'll enjoy reading

How I grew my asset management company to fund $1.7 Billion.
Follow @ValKatayev for more threads on business.
PS. There is a misconception that a "Shadow Bank" is some negative term. It is not.

Nor did this thread say anything negative about them.

It is an official term for financial institutions that are not a bank.

In fact I'm very much intrigued by the platform and what they built. source: Wikipedia

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More from @ValKatayev

Oct 10
A legend passed away yesterday. This gentleman built a $300B empire and pledged 66% of it to charity.

He owns Jaguar and Range Rover and is a leader in India's airline, Steel, Fashion, Car, and Technology industries.

The greatest philanthropist you've never heard of - Ratan TataImage
How is the Tata Group worth $300B?

It has 29 publicly listed companies with a combined valuation of Rs. 23 trillion or $314 Billion.

From fashion to airways & steel to IT, automobiles, chemicals, and hospitality, the TATA group has a public company in every industry. Image
Tata Consultancy Services alone did $26B in revenue last year.

That's more than McKinsey, Bain, and BCG Combined.
Read 24 tweets
Aug 17
Look at this kids face.

He was making $500K per cold email sent. Reached half BILLION people per month.

Earned $10M+ profit in the 1st year of the business. Sold it and "retired".

Here's what his business was and how he built it: (this is my story) 👇 Image
It all started in 2006. I had already built a massive Google Ads business from my parent's basement.

I was paid to drive search traffic to advertisers.

It was a solid business that generated many millions in profits, but I didn't like being dependent on Google.
One of the clients that I used to drive traffic to was Rhapsody Music.

Rhapsody was ahead of its time allowing people to subscribe to unlimited music.

This was the future (Steve Jobs of course thought otherwise with a $0.99 per song pricing and set streaming back many years)
Read 51 tweets
Aug 4
At 19, this kid built a Google Ads business that quickly made over $30 million in profit. The kid is me.

I was the only employee (in a basement).

At one point, I was Google’s 2nd largest advertiser after eBay.

Here’s the story of how I made this happen and what the biz did: Image
A few years ago, a stack of envelopes w/checks arrived on my bday. They were class action settlement checks.

These were remnants of my first big hustle.

The business was performance marketing. I used paid search to execute it.

That combo just crushed it.
Image
Image
The way it worked was, I’d get paid to drive customers to an advertiser. I figured out that search advertising was extremely targeted for any kind of customer.

All I had to do is spend less per click than what I was effectively generating in bounties to acquire a customer.
Read 37 tweets
May 22
Don't give your kids an allowance.

Pay them interest instead.

I made a system that naturally instills the power of compounding and makes them understand money. I've used it for many years.

Here's a thread on how it works, my downloadable worksheet, and the results 👇
At a very young age, I explained to each of my kids the concept of saving money.

However, I told them saving is not the main goal.

Making sure money works for you while you sleep is the most important component.

They were fascinated by money working during sleep.
I showed them that they can let others use their money. In return, they get paid for lending it.

To make it simple, I said, give me the money, and I'll loan it out for you. You will receive 12% a year. Or 1% a month.
Read 16 tweets
May 10
A legend passed away today. This x-CIA math genius built a quantitative trading fund that earned more than $100 BILLION for investors.

At 66% return/yr, his track record destroys that of Warren Buffet, George Soros, Carl Icahn.

A thread on "Greatest Investor of Wall Street" 👇 Image
1/28
If you'd have put $100 into Jim Simons' Medallion Fund in 1988, it would be $400M+ today.

By contrast,

$100 in the S&P 500 in 1988, would be $2,000 in 2022. (roughly)

Let that sink in.
2/28
Jim Simons's Medallion fund has had unreasonably high annual returns of 66% across 30 years.

For comparison, Buffet clocked in at about 20%/yr.

Many funds don't make that in a lifetime.
Read 30 tweets
Apr 17
One company dominates the fine jewelry category in US.

It does $8 BILLION in sales.

6 years ago I started a company to take on this juggernaut.

Here’s how and why I entered the jewelry industry (click here for thread) Image
The company is Signet and it manages 2,800 locations with 30,000 employees across these stores they own:

Zales
Kay
Jared
Blue Nile
Diamonds Direct
James Allen
Banter/Piercing Pagoda
Rockbox
People's (Canada)
Ernest Jones (UK)
H. Samuel (UK)
The crazy part is that the "giant" of Signet only has 9.7% of US market share.

And the next biggest jewelry company in the entire western hemisphere is tiny.
Read 61 tweets

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