BlackRock CEO Larry Fink roasted by former exec over ethical investing: 'Stop ducking the fight' or resign

The leader of one of the most powerful and profitable investment asset firms in the world was grilled by his former "sustainable investing" chief for making the company a "political football" and a target of Republican politicians.

BlackRock former sustainable investing czar Tariq Fancy called his one-time boss, BlackRock CEO Larry Fink, an "emperor with no clothes" and called for him to step down. 

"Larry Fink should stop ducking the fight and enter the [ESG] debate to clarify what he’s saying. If he’s not going to do that then he should resign," Fancy told The Telegraph. 

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In a statement to Fox News Digital a spokesperson from BlackRock said that Fancy "has been gone from BlackRock for a longer time than he spent at the firm." 

"But three years later, he continues to trade on BlackRock’s name to advance his political agenda," it continued. "It’s absurd that he would suggest a CEO step down who has delivered a cumulative total return to shareholders over 23 years of 7,700% -- the best performing financial firm in the S&P over that time -- by consistently putting clients’ interests first. The money BlackRock manages doesn’t belong to Tariq Fancy or anyone else with a political agenda – it belongs to our clients. We will continue to manage that money consistent with their long-term goals and objectives, not those of Tariq Fancy, who is trying to advance his own agenda and interests."

BlackRock is one of the "big three" asset managers, along with Vanguard Group and State Street Global Advisors. In total, the three companies hold around $20 trillion, a Treasury putting them on par with the total GDP of the United States. 

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BlackRock controls roughly $8 trillion in assets, making it one of the most powerful pro-ESG [environmental, social, and governance] voices in the financial world. 

Fancy’s comments came just days after North Carolina State Treasurer Dale Fowell fired off a letter to BlackRocks’ board of directors, also demanding that Fink step down as CEO of BlackRock. 

Fink has taken flack for pursuing controversial ESG policies and pushing for an "energy transition" despite resistance from governors, especially in red states across the country. 

Energy expert Steve Milloy told Fox News Digital that the billionaire businessman may have committed a crime.  

"Larry Fink should resign or be fired as CEO of BlackRock because his conduct is at the very least hypocritical and unethical, and he may have violated the law," he said adding that Fink violated his responsibility to "invest exclusively for the financial benefit of the beneficiaries" and not just for political gain.

Fink also has "pushed net-zero climate policies" without proper "due diligence," Milloy said. 

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Gov. Ron DeSantis, Fl., Re and Gov. Greg Abbott have both opposed BlackRock publicly. DeSantis was praised for withdrawing $2 billion in assets from BlackRock, with one commentator calling ESG investing "an illegal leftist scam." Abbott tweeted on Dec. 1 that "Texas was the first state to ban BlackRock from doing business with our state. "

Florida’s chief financial officer, Jimmy Patronis also took to Twitter to blast BlackRock on the same day. 

"Using Florida's cash to fund BlackRock's social-engineering project isn't something we signed up for," he tweeted.  

Fancy told The Telegraph that "BlackRock’s biggest mistake was getting involved in political issues," arguing that Fink buried the company in a grave of his own making. 

"They’ve now found themselves in a place where they’re a political football and there’s no way to satisfy either side," he said.

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FOX Business’ Eric Revell contributed to this report.