According to informed sources, the USA Federal Deposit Insurance Corporation (FDIC) has requested that the asset management company Blackrock (BLK.US) accept an agreement by January 10 that would allow the agency to enhance its review of investments in banks under FDIC regulation.

The FDIC previously announced that it has reached an agreement with Vanguard to strengthen oversight of this investment management giant that holds a significant stake in major financial institutions in the USA. The agreement grants the FDIC more power to monitor Vanguard's investment activities, aiming to ensure that the largest asset management companies, including Vanguard and Blackrock, do not influence the business decisions of the largest banks in the USA, even if they hold substantial shares in banks through index or passive investment Funds. This is the latest development in a months-long tug-of-war between the FDIC and the two largest index mutual fund and exchange-traded fund managers.

The FDIC is pushing both companies to adopt a "passive agreement," which would provide regulators with more tools to supervise the compliance of asset management companies and commit not to influence the business decisions of FDIC-regulated banks in which they have invested.

Individuals familiar with Blackrock's negotiations with the FDIC said the company received the regulator's latest proposal on Friday, just under an hour after the announcement of the Vanguard agreement. The source noted that the wording of the proposed agreement is "essentially the same" as that of the Vanguard agreement.

FDIC Board of Directors member and director of the USA Consumer Financial Protection Bureau (CFPB) Rohit Chopra stated in a release on Monday: "We know that CEOs and Board of Directors members of large companies closely monitor these large company policy statements. If a large asset management company is truly as passive as it claims to be, then it should have no problem adhering to the rules."

In a public comment letter submitted to the FDIC in October, Blackrock stated that it has made a legally binding commitment to the Federal Reserve to continue acting as a passive investor in the USA banking industry. Benjamin Tecmire, head of regulatory affairs at Blackrock, stated in the letter: "Blackrock does not exercise control over FDIC-regulated institutions, nor does it seek to do so."

The FDIC has not specified what the consequences may be if Blackrock fails to comply before the January 10 deadline.