U.S. asset manager BlackRock Inc. has bid to manage assets under the U.S. government's Troubled Asset Relief Program (TARP) but sees low margins from that business, Chief Executive Laurence Fink said Tuesday.

"Margins are going to be lower for TARP business than other products," Fink said in an earnings conference call.

"In our submission, we did assume that margins are going to be much smaller than other product areas, but we also did assume that the size that each manager will have to manage will be quite large. So it should turn into a good business," Fink said.

"But it's appropriate that the managers work for a very tight spread in these markets to help the economy unlock itself," Fink added.
(Reuters)