BlackRock Escapes Pension Funds' Securities Lending Suit

Law360, New York (August 29, 2013, 3:18 PM EDT) -- Two BlackRock Inc. affiliates didn't do anything wrong by allegedly squeezing high fees out of mutual funds for their securities lending services because they had an exemption from the U.S. Securities and Exchange Commission, a Tennessee federal judge ruled Wednesday.

U.S. District Judge Aleta A. Trauger said that although SEC rules prohibit a fund adviser from using an affiliate for securities lending services, they also have several exceptions, including one that allows the adviser and provider to get a special waiver — which is exactly what...
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