Bank of America owns 34 percent of BlackRock [see BlackRock profile here and iShares profile here], but perhaps not for long. The Wall Street Journal's Dan Fitzpatrick and Susanne Craig report that, according to unnamed sources, BofA is pondering selling some of its stake in Larry Fink's giant asset manager.

"Bank of America Corp. has concluded that its 34 percent share of BlackRock Inc. isn't a core asset and is weighing a possible reduction of its holdings in the influential New York asset manager, said people familiar with the situation," the WSJ reports.

The WSJ put such a share sale in the context of other BofA divestments, such as the recent sale of Columbia Management [see profile] (except the money market business) to Ameriprise and the recent sale of BofA's stake in Banco Santander SA's Mexican arm. The WSJ also notes that the proposed Basel III international capital standards "could make it more challenging for banks to keep stakes in other financial institutions."

"They are in disposition mode, not acquisition," Sanford C. Bernstein & Co. analyst John McDonald told the WSJ. "Their strategy right now is one of pruning and slimming down and focusing on core businesses and figuring out what strategies will be most effective in the new regulatory environment."

According to the WSJ, BofA's BlackRock stake (which includes 3.6 percent of BlackRock common stock and 50 percent of nonvoting preferred stock) was worth $9.2 billion as of June 30. When selling shares, BofA may need approval from BlackRock. 

Edited by: Neil Anderson, Managing Editor


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