11 States Sue BlackRock and Vanguard for ESG Manipulation... (If They Die, They Die)

“My tinfoil hat moment is believing that Larry Fink is our real-life equivalent of a Bond villain, secretly running the world…(Only sheep will disagree).”

So apparently Texas and ten of its boot-scootin GOP buddies (read: states) are saddling up for a good old fashion showdown against some of Wall Street's biggest players:  BlackRock, Vanguard, and State Street. The accusation? Allegedly using their puppeteer strings to choke the coal industry and leave Americans with higher utility bills—all while shoving “tree-hugging and save the worms” down our throat. 

(Source: Giphy) 

In short, this lawsuit filed in an East Texas federal court (because, of course, it was), accuses these money management behemoths of colluding to slash coal production by pressuring coal companies to go green. The states argue this mischievous little arrangement drove down coal supply, jacked up energy prices, and left their residents footing the bill. You know, the kind of vibe that screams “we’re saving the planet, but first, let’s make electricity obscenely high and unaffordable”? Yeah, that one. 

(Source: Axios) 

As it turns out,  BlackRock, Vanguard, and State Street—collectively managing a jaw-dropping $26 trillion in assets—rolled into the coal scene with big stakes in major players like Arch Resources and Peabody Energy. But instead of sitting back and raking in the profits, they allegedly teamed up to push environmental goals that would cut coal production by more than 50% by 2030. The states are calling this an “illegal weaponization of the financial industry.” And I for one, can’t help but agree. 

(Source: Giphy) 

You see, zooming out for a second, this lawsuit isn’t just about coal—it’s the latest chapter in the conservative crusade against ESG (environmental, social, and governance) investing. ESG, for the uninitiated, is Wall Street’s own version of a foot fetish to responsible investing: think clean energy, diversity initiatives, and all those things that make billionaires feel good about themselves as they release millions of CO2 emissions from their private jet whilst on their way to a weekend in Ibiza. But, but, but… for conservatives, ESG is shorthand for “woke capitalism” gone wild. 

However, BlackRock, unsurprisingly, isn’t having it. In a statement, they called the lawsuit “baseless” and suggested it would scare away investors faster than a bad Intel earnings report. “This lawsuit undermines Texas’ pro-business reputation,” BlackRock said. As for Vanguard and State Street? Radio silence so far, presumably because they are hoping the storm blows over before they have to comment. 

(Source: Pensions and Investments) 

What’s interesting though is that the  lawsuit points to some eyebrow-raising numbers. BlackRock and friends collectively hold 34.2% of Arch Resources and 30.4% of Peabody Energy—two of the biggest coal producers in the U.S. The states argue this kind of market power isn’t just influence; it’s borderline monopoly behavior, with Wall Street allegedly acting like a cartel to strong-arm coal companies into cutting output.

And while Vanguard and State Street have quietly backed out of some climate advocacy groups in recent years (like the Net Zero Asset Managers Initiative and Climate Action 100+), the lawsuit claims the damage is already done—and the “threat” of future ESG-driven meddling is alive and well.

(Source: Giphy) 

Meaning, for the average Texan—or anyone in the 11 states suing—this fight boils down to one thing: paying higher electricity bills. With coal output down and no viable replacement for cheap energy in sight, utility costs have surged. And while climate advocates argue that reducing carbon footprints is worth the price, the states are saying, “F**k dem trees”. Ok maybe not that aggressive, but it’s oil country, baby—what else do you expect? 

In addition, this case also sets the stage for a larger war over how much influence financial giants should have over industries like coal. Should Wall Street be allowed to play climate savior when it means higher prices for consumers? Or are these money managers overstepping their bounds and using ESG as a weapon? Two very important questions to consider as our nation continues to rip itself apart straight down the middle.

(Source: Giphy) 

On one side, you’ve got Texas and its allies fighting for coal, cheap electricity, and the holy grail of “free markets.” On the other, you’ve got BlackRock, Vanguard, and State Street defending their right to prioritize environmental goals without being labeled a cartel. Either way, the stakes couldn’t be higher—for coal, for climate policy, and for the wallets of millions of Americans. As for the rest of us? I just want cheap gas. Give me that, and I’ll be happy, amirite?

In the end, keep an eye on this story as it continues to unfold, and as always, stay safe and stay frosty, friends! Until next time… 

P.S. Black Friday is here, you degenerates! And while I’m sure you’re gearing up to cause some family turmoil by bringing up Donny Politics at your thanksgiving dinner tomorrow (like me, because why not?)—it’ll be even sweeter knowing that you capped the MOST insane deal of the year with our 90% OFF Stocks.News premium deal. That’s right. 90% OFF! Translation: I’m literally giving you the greenlight to pick our pockets right now. So don’t hesitate… this deal won’t last for long! 

Stocks.News holds positions in on of Vanguard’s subsidies as mentioned in the article: Vanguard Total Stock Market Index Fund ETF Shares