On August 9th, it was reported that BlackRock and Vanguard Group are facing another round of review by the Federal Deposit Insurance Corporation (FDIC) to prevent large asset management companies from manipulating banks holding large stakes. Insiders revealed that the FDIC sent letters to two companies last week requesting details of their bank investments and proof of being passive shareholders. The letter from FDIC has made asset management companies aware that holding more than 10% of shares in banks regulated by FDIC may lead to stricter regulatory measures. The FDIC spokesperson confirmed that the letter was sent to the two companies mentioned above and declined further comment. BlackRock stated that it is in talks with the FDIC regarding this matter. "As trustees, our sole focus is on the long-term financial interests of our clients." A spokesperson for Vanguard stated that the company is in communication with policy makers and proposing "further clarification and refinement of expectations for passive investments.