FORM 10-Q

UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, DC 20549

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the quarterly period ended June 30, 2001

OR

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the transition period from ____________ to ____________

Commission file number 001-15305

|                                                              | BlackRock, Inc.                     |                                     
|------------------------------------------------------------- | ----------------------------------- | ------------------------------------
|                                                              |                                     |                                     
|(Exact name of registrant as specified in its charter)       
|Delaware                                                      |                                     | 51-0380803                          
|                                                              |                                     |                                     
|(State or other jurisdiction of                               |                                     | (I.R.S. Employer Identification No.)
|incorporation or organization)                                |                                     |                                     
|                                                             
|                                                              | 345 Park Avenue, New York, NY 10154 |                                     
|                                                              |                                     |                                     
|(Address of principal executive offices)                     
|(Zip Code)                                                   
|                                                              |                                     |                                     
|(212) 754-5560                                               
|                                                              |                                     |                                     
|(Registrants telephone number, including area code)         
|                                                             
|                                                             
|                                                              |                                     |                                     
|(Former name or former address, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the proceeding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X             No ______

As of July 31, 2001, there were 10,313,206 shares of the registrants class A common stock outstanding and 53,966,524 shares of the registrants class B common stock outstanding.



BlackRock Inc.

Index to Form 10-Q

PART I

FINANCIAL INFORMATION

|        |                                                                                       | Page | 
|------- | ------------------------------------------------------------------------------------- | ---- | 
|        |                                                                                       |      | 
|        |                                                                                       |      | 
|Item 1. | Financial Statements                                                                  |      | 
|        | Consolidated Statements of Financial Condition                                        | 1    | 
|        | Consolidated Statements of Income                                                     | 2    | 
|        | Consolidated Statements of Cash Flows                                                 | 3    | 
|        | Notes to Consolidated Financial Statements                                            | 4    | 
|Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations | 9    | 
|        |                                                                                       |      | 
|Item 3. | Quantitative and Qualitative Disclosures About Market Risk                            | 22   | 

PART II

OTHER INFORMATION

|Item 1. | Legal Proceedings |  | 23
|------- | ----------------- |  | --

|Item 4. | Submission of Masters to a Vote of Security Holders |  | 23
|------- | --------------------------------------------------- |  | --

|Item 6. | Exhibits and Reports on Form 8-K |  | 24
|------- | -------------------------------- |  | --









PART I  FINANCIAL INFORMATION

Item 1.  Financial Statements

|BlackRock, Inc.Consolidated Statements of Financial Condition
(Dollar amounts in thousands)
|-------------------------------------------------------------------------------------------
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Assets                                                                                     
|Cash and cash equivalents                                                                  
|Accounts receivable                                                                        
|Investments, available for sale (cost: $143,502 and $16,854, respectively)                 
|Property and equipment, net                                                                
|Intangible assets, net                                                                     
|Receivable from affiliates                                                                 
|Other assets                                                                               
|                                                                                           
|Total assets                                                                               
|                                                                                           
|                                                                                           
|Liabilities and stockholders equity                                                       
|Accrued compensation                                                                       
|Accounts payable and accrued liabilities                                                   
|Affiliate                                                                                  
|Other                                                                                      
|Acquired management contract obligation                                                    
|Other liabilities                                                                          
|                                                                                           
|Total liabilities                                                                          
|                                                                                           
|Stockholders equity                                                                       
|Common stock, class A, 10,167,290 and                                                      
|9,487,297 shares issued, respectively                                                      
|Common stock, class B, 54,285,961 and                                                      
|54,509,875 shares issued, respectively                                                     
|Additional paid - in capital                                                               
|Retained earnings                                                                          
|Unearned compensation                                                                      
|Accumulated other comprehensive loss                                                       
|Treasury stock, class A, at cost                                                           
|Treasury stock, class B, at cost                                                           
|                                                                                           
|Total stockholders equity                                                                 
|                                                                                           
|Total liabilities and stockholders equity                                                 
|                                                                                           
|                                                                                           
|                                                                                           
|See accompanying notes to consolidated financial statements.                               
|                                                                                           

-1-

|BlackRock, Inc.Consolidated Statements of Income(Dollar amounts in thousands, except share data)

(unaudited)
|-------------------------------------------------------------------------------------------------------------
|                                                                                                             
|                                                                                                             
|                                                                                                             
|                                                                                                             
|                                                                                                             
|Revenue                                                                                                      
|Investment advisory and administration fees                                                                  
|Mutual funds                                                                                                 
|Separate accounts                                                                                            
|Other income                                                                                                 
|Affiliate                                                                                                    
|Other                                                                                                        
|                                                                                                             
|Total revenue                                                                                                
|                                                                                                             
|                                                                                                             
|Expense                                                                                                      
|Employee compensation and benefits                                                                           
|Fund administration and servicing costs - affiliates                                                         
|General and administration                                                                                   
|Affiliate                                                                                                    
|Other                                                                                                        
|Amortization of intangible assets                                                                            
|                                                                                                             
|Total expense                                                                                                
|                                                                                                             
|                                                                                                             
|Operating income                                                                                             
|                                                                                                             
|Non-operating income (expense)                                                                               
|Investment income                                                                                            
|Interest expense                                                                                             
|                                                                                                             
|Total non-operating income                                                                                   
|                                                                                                             
|                                                                                                             
|Income before income taxes                                                                                   
|Income taxes                                                                                                 
|                                                                                                             
|Net income                                                                                                   
|                                                                                                             
|                                                                                                             
|Earnings per share                                                                                           
|Basic                                                                                                        
|Diluted                                                                                                      
|                                                                                                             
|Weighted-average shares outstanding                                                                          
|Basic                                                                                                        
|Diluted                                                                                                      
|                                                                                                             
|See accompanying notes to consolidated financial statements.                                                 
|                                                                                                             

-2-



BlackRock, Inc.
Consolidated Statements of Cash Flow
(Dollar amounts in thousands)

(unaudited)



|                                                               
|---------------------------------------------------------------
|                                                               
|                                                               
|                                                               
|                                                               
|Cash flows from operating activities                           
|Net income                                                     
|Adjustments to reconcile net income to net cash provided by    
|operating activities:                                          
|Depreciation and amortization                                  
|Stock-based compensation                                       
|Tax benefit from stock-based compensation                      
|Changes in operating assets and liabilities:                   
|Decrease (increase) in accounts receivable                     
|Decrease in receivable from affiliate                          
|Decrease (increase) in other assets                            
|Decrease in accrued compensation                               
|Increase (decrease) in accounts payable and accrued liabilities
|Decrease in accrued interest payable to affiliates             
|Increase (decrease) in other liabilities                       
|                                                               
|Cash provided by operating activities                          
|                                                               
|Cash flows from investing activities                           
|Purchase of property and equipment                             
|Purchase of investments                                        
|                                                               
|Cash used in investing activities                              
|                                                               
|Cash flows from financing activities                           
|Repayment of note and loan payable to affiliates               
|Issuance of class A common stock                               
|Purchase of treasury stock                                     
|Reissuance of treasury stock                                   
|Acquired management contract obligation payment                
|                                                               
|Cash used in financing activities                              
|                                                               
|Effect of exchange rate changes on cash and cash equivalents   
|                                                               
|Net decrease in cash and cash equivalents                      
|Cash and cash equivalents, beginning of period                 
|                                                               
|Cash and cash equivalents, end of period                       
|                                                               
|                                                               
|See accompanying notes to consolidated financial statements.   

---

-3-

BlackRock, Inc.Notes to Consolidated Financial Statements

Six Months Ended June 30, 2001 and 2000(Dollar amounts in thousands, except share data)

(unaudited)

1. Significant Accounting Policies

> Basis of Presentation
> 
> The consolidated interim financial statements of BlackRock, Inc. and its subsidiaries (BlackRock or the Company) included herein have been prepared in accordance with generally accepted
> accounting principles for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements.
> These consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Companys Annual Report on Form 10-K for the year ended December 31,
> 2000. The Company follows the same accounting policies in the preparation of interim reports as set forth in the annual report. In the opinion of management, the consolidated financial statements reflect all adjustments, which are of a normal
> recurring nature, necessary for a fair presentation of the financial position, results of operations and cash flows of BlackRock for the interim periods presented and are not necessarily indicative of a full years results.
> 
> In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results could differ from those
> estimates.
> 
> Derivative Instruments and Hedging Activities
> 
> In 1998, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards (SFAS) No. 133 Accounting for Derivative Instruments and Hedging
> Activities, as amended by SFAS No. 137 and No. 138. SFAS No. 133 establishes accounting and reporting standards for derivative instruments, including certain derivatives embedded in other contracts and for hedging activities. SFAS No. 133
> generally requires an entity to recognize all derivatives as either assets or liabilities in the statement of financial position and measure those investments at fair value. SFAS No. 133 is required to be adopted for fiscal years beginning after
> June 15, 2000. The Company adopted the new statement as of January 1, 2001. The adoption of SFAS No. 133 has not had a material impact on the Companys results of operations, financial position, or cash flows.
> 
> Reclassification of Prior Periods Statements
> 
> Certain items previously reported have been reclassified to conform with the current period presentation.

-4-



> Recent Accounting Pronouncements
> 
> On July 20, 2001, the FASB issued SFAS No. 141, Business Combinations. SFAS No. 141 requires the purchase method of accounting be used for all business combinations initiated or completed after June 30, 2001
> and eliminates the pooling-of-interests method of accounting. The statement also addresses disclosure requirements for business combinations and initial recognition and measurement criteria for goodwill and other intangible assets as a result of
> purchase business combinations.
> 
> On July 20, 2001, the FASB also issued SFAS No. 142, Goodwill and Other Intangible Assets, which changes the accounting for goodwill from an amortization method to an impairment-only approach. The
> amortization of goodwill, including goodwill recognized relating to past business combinations, will cease upon adoption of the new standard. Impairment testing for goodwill at a reporting unit level will be required on at least an annual basis. The
> new standard also addresses other accounting matters, disclosure requirements and financial statement presentation issues relating to goodwill and other intangible assets. The Company will adopt SFAS No. 142 effective January 1, 2002, as required.
> Assuming no impairment adjustments are necessary, no future business combinations, and no other changes to goodwill, the Company expects diluted earnings per share to increase by approximately $.08 per share in 2002 resulting from the cessation of
> goodwill amortization.

2. Investments Available for Sale

> A summary of the cost and fair market value of investments, available for sale is as follows:

|                               
|-------------------------------
|                               
|                               
|                               
|June 30, 2001                  
|                               
|Mutual funds                   
|Collateralized bond obligations
|Other                          
|                               
|                               
|                               
|December 31, 2000              
|                               
|Mutual funds                   
|Collateralized bond obligations
|Other                          
|                               
|                               
|                               
|                               

Net realized gains on the sale of investments, available for sale totaled $6 and $0 for the six months ended June 30, 2001 and June 30, 2000, respectively.

-5-



3. Common Stock

> BlackRocks class A, $0.01 par value, common shares authorized was 250,000,000 shares as of June 30, 2001 and June 30, 2000, respectively. BlackRocks class B, $0.01 par value, common shares authorized was
> 100,000,000 shares as of June 30, 2001 and June 30, 2000, respectively.
> The Companys common shares issued and outstanding and related activity consists of the following:



|                                           
|-------------------------------------------
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|                                           
|December 31, 2000                          
|Conversion of class B stock to             
|class A stock                              
|Issuance of shares to Nonemployee Directors
|Issuance of class A common stock           
|Issuance of class B common stock           
|Treasury stock transactions                
|                                           
|June 30, 2001                              
|                                           
|                                           
|                                           



4. Comprehensive Income



|                                                                
|----------------------------------------------------------------
|                                                                
|                                                                
|                                                                
|                                                                
|                                                                
|Net income                                                      
|Accumulated other comprehensive income gain (loss):             
|Unrealized gain (loss) from investments, available for sale, net
|Foreign currency translation gain (loss)                        
|                                                                
|Comprehensive income                                            
|                                                                
|                                                                
|                                                                

-6-

5. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share:



|                                            
|--------------------------------------------
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|                                            
|Net income                                  
|                                            
|                                            
|Basic weighted-average shares outstanding   
|                                            
|Dilutive potential shares from forward sales
|Dilutive potential shares from stock options
|                                            
|Dilutive weighted-average shares outstanding
|                                            
|                                            
|Basic earnings per share                    
|                                            
|                                            
|Diluted earnings per share                  
|                                            
|                                            
|                                            

6. Supplemental Statements of Cash Flow Information

Supplemental disclosure of cash flow information:



|                          
|--------------------------
|                          
|                          
|                          
|                          
|Cash paid for interest    
|                          
|                          
|Cash paid for income taxes
|                          

Supplemental schedule of noncash transaction:



|                        
|------------------------
|                        
|                        
|                        
|                        
|                        
|Stock-based compensation
|                        
|                        
|                        

-7-



7.Stock Option Plan

> On May 2, 2001, BlackRocks shareholders approved an amendment to the BlackRock, Inc. 1999 Stock Award and Incentive Plan to increase the number of shares of class A common stock available under such plan to
> 9,000,000 shares. BlackRocks shareholders previously authorized the issuance under the plan of up to 5.93% of the total shares of common stock outstanding.

8.  Employee Stock Purchase Plan

> On May 2, 2001, BlackRocks shareholders approved the adoption of the BlackRock, Inc. 2001 Employee Stock Purchase Plan (ESPP), the terms of which allow eligible employees to purchase shares of the
> Companys class A common stock at 85% of the lesser of fair market value on the first or last day of each six-month offering period. No charge to earnings will be recorded with respect to the ESPP. The first offering period began on August 1,
> 2001. A total of 1,250,000 shares of class A common stock are available for issuance under the ESPP.

9.  Share Repurchase Program

> On May 2, 2001, BlackRocks Board of Directors authorized BlackRock to repurchase up to 500,000 of its outstanding shares of class A common stock from time to time as market and business conditions warrant in open
> market or privately negotiated transactions. To date, BlackRock has not purchased any shares of its outstanding class A common stock under this repurchase program.

10.  Subsequent Event

> On July 20, 2001, the Company entered into a commitment to invest $5.4 million in Carbon Capital, Inc., an alternative investment fund sponsored by BlackRock.

-8-

Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations

BlackRock, Inc., a Delaware corporation (together with its subsidiaries BlackRock or the Company), is one of the 25 largest investment management firms in the United States with approximately
$212.7 billion of assets under management at June 30, 2001. BlackRock is a majority-owned indirect subsidiary of The PNC Financial Services Group, Inc. (PNC), one of the largest diversified financial services companies in the United
States, operating businesses engaged in regional community banking, corporate banking, real estate finance, asset-based lending, wealth management, asset management and global fund services. As of June 30, 2001, PNC indirectly owns approximately
70%, the public owns approximately 15% and BlackRock employees own approximately 15% of BlackRock.

The following table summarizes BlackRocks operating performance for the three months ended June 30, 2001, June 30, 2000 and March 31, 2001 and the six months ended June 30, 2001 and June 30, 2000:

BlackRock, Inc.

Financial Highlights
(Dollar amounts in thousands, except share data)

(unaudited)



|                                       
|---------------------------------------
|                                       
|                                       
|                                       
|                                       
|                                       
|                                       
|Total revenue                          
|Total expense                          
|Operating income                       
|Net income                             
|Diluted earnings per share             
|Diluted cash earnings per share (a)    
|Average diluted shares outstanding     
|EBITDA (b)                             
|Operating margin (c)                   
|                                       
|Assets under management ($ in millions)
|                                       





|                                        |  |  | Six months ended |  |         
|--------------------------------------- |  |  | ---------------- |  | --------
|                                        |  |  | June 30,         |  | Variance
|                                        |  |  |                  |  |         
|                                        |  |  | 2001             |  | 2000    
|                                        |  |  |                  |  |         
|Total revenue                           |  |  | $268,971         |  |         
|Total expense                           |  |  | $184,343         |  |         
|Operating income                        |  |  | $84,628          |  |         
|Net income                              |  |  | $51,726          |  |         
|Diluted earnings per share              |  |  | $0.80            |  |         
|Diluted cash earnings per share (a)     |  |  | $0.88            |  |         
|Average diluted shares outstanding      |  |  | 64,867,348       |  |         
|EBITDA (b)                              |  |  | $101,253         |  |         
|Operating margin (c)                    |  |  | 35.8%            |  |         
|                                        |  |  |                  |  |         
|Assets under management ($ in millions) |  |  | $212,694         |  |         
|                                       

|(a) | Net income plus amortization expense for the period divided by average diluted shares outstanding.  
|--- | ----------------------------------------------------------------------------------------------------
|(b) | Earnings before interest expense, taxes, depreciation and amortization.                             
|(c) | Operating income divided by total revenue less fund administration and servicing costs  affiliates.

---

-9-




> General
> 
> BlackRock derives a substantial portion of its revenue from investment advisory and administration fees, which are recognized as the services are performed. Such fees are primarily based on predetermined percentages of
> the market value of assets under management and are affected by changes in assets under management, including market appreciation or depreciation and net subscriptions or redemptions. Net subscriptions or redemptions represent the sum of new client
> assets, additional fundings from existing clients, withdrawals of assets from and termination of client accounts and purchases and redemptions of mutual fund shares.
> 
> Investment advisory agreements for certain separate accounts and BlackRocks alternative investment products provide for performance fees in addition to fees based on assets under management. Performance fees are
> earned when investment performance exceeds a contractual threshold and, accordingly, may increase the volatility of BlackRocks revenue and earnings.
> 
> BlackRock provides a variety of risk management and technology services to insurance companies, finance companies, pension funds, REITs, commercial and mortgage banks, savings institutions and government agencies. These
> services are provided under the brand nameBlackRock SolutionsTMand include a wide array of risk management services and enterprise investment system outsourcing to clients. The fees earned on risk management advisory assignments are recorded as other income.
> 
> Operating expense primarily consists of employee compensation and benefits, fund administration and servicing costs-affiliates, general and administration, and amortization of intangible assets. Employee compensation
> and benefits expense reflects salaries, deferred and incentive compensation and related benefit costs. Fund administration and servicing costs-affiliates expense reflects payments made to PNC affiliated entities, primarily associated with the
> administration and servicing of PNC client investments in theBlackRock FundsSM. Intangible assets at June 30, 2001 and December 31, 2000 were $186.9 million and $192.1 million, respectively, with amortization expense of approximately $2.6 million and $2.5 million for the three months ended June
> 30, 2001 and June 30, 2000, respectively and $5.2 million and $4.9 million for the six months ended June 30, 2001 and June 30, 2000, respectively. Intangible assets reflect PNCs acquisition of BlackRock Financial Management, L.P.
> (BFM) on February 28, 1995 and a management contract acquired in connection with the agreement and plan of merger of CORE Cap, Inc. with Anthracite Capital, Inc., a BlackRock managed REIT, on May 15, 2000.

-10-

> Assets Under Management
> Assets under management (AUM) increased $35.4 billion, or 20%, to $212.7 billion at June 30, 2001, compared with $177.3 billion at June 30, 2000. The growth in assets under management was attributable to
> increases of $28.3 billion in separate accounts and $7.0 billion in mutual fund assets. The increase in separate accounts was due to net subscriptions of $20.1 billion and market appreciation of $8.2 billion. Net subscriptions in fixed income,
> alternative investment products, and equity accounts were $16.7 billion, $1.7 billion and $2.7 billion, respectively, while liquidity and liquidity-securities lending separate account assets experienced net redemptions of $.3 billion and $.7
> billion, respectively. The rise in fixed income and alternative investment products separate accounts was attributable to strong relative investment performance resulting in higher levels of funding from existing clients as well as increased sales
> to new clients. The growth in equity separate account assets primarily reflected new business generated by the European equity team. The $.3 billion decrease in liquidity separate accounts was primarily due to the loss of a large client in 2000. The
> $.7 billion decline in liquidity-securities lending separate accounts was primarily attributable to lower levels of cash collateral managed by BlackRock for PFPC Worldwide, Inc. (PFPC), a PNC affiliate, as a result of the decline in the
> equity markets. Market appreciation of $8.2 billion in separate accounts was primarily due to appreciation in fixed income assets of $9.8 billion, associated with the decline in market interest rates, partially offset by market depreciation of $2.0
> billion in equity assets. The $7.0 billion increase in mutual fund assets reflected net subscriptions of $11.3 billion, including $2.3 billion of closed-end funds maturities, due to strong sales ofBlackRock
> Provident Institutional FundsSM(BPIF) which was partially offset by market depreciation of $4.5 billion in theBlackRock Fundslargely associated with a decline in
> the equity markets.

BlackRock, Inc.

Assets Under Management(Dollar amounts in millions)

(unaudited)

---

|                                |   |          |  |         |         |  | Variance
|------------------------------- | - | -------- |  | ------- | ------- |  | --------
|                                |   | June 30, |  |        
|                                |   | 2001     |  |         | 2000    |  |         
|Separate Accounts               |   |          |  |         |         |  |         
|Fixed income                    | $ | 110,483  |  | $       | 83,950  |  | $       
|Liquidity                       |   | 6,782    |  |         | 7,052   |  |         
|Liquidity-Securities lending    |   | 10,004   |  |         | 10,655  |  |         
|Equity                          |   | 8,257    |  |         | 7,621   |  |         
|Alternative investment products |   | 4,479    |  |         | 2,394   |  |         
|                                |   |          |  |         |         |  |         
|Subtotal                        |   | 140,005  |  | 111,672 |         |  | 28,333  
|                                |   |          |  |         |         |  |         
|Mutual Funds                    |   |          |  |         |         |  |         
|Fixed income                    |   | 12,326   |  |         | 13,919  |  |         
|Liquidity                       |   | 48,829   |  |         | 35,944  |  |         
|Equity                          |   | 11,534   |  |         | 15,802  |  |         
|                                |   |          |  |         |         |  |         
|Subtotal                        |   | 72,689   |  |         | 65,665  |  |         
|                                |   |          |  |         |         |  |         
|Total                           | $ | 212,694  |  | $       | 177,337 |  | $       
|                                |   |          |  |         |         |  |         

---

-11-

Assets Under Management (continued)

The following tables present the component changes in BlackRocks assets under management for the three months and six months ended June 30, 2001 and June 30, 2000, respectively. The data reflects certain
reclassifications between net subscriptions (redemptions) and market appreciation (depreciation) from amounts previously reported.

For the three months and six months ended June 30, 2001, net subscriptions represented 92% and 91%, respectively, of the total increase in assets under management. Net subscriptions were $10.2 billion and $8.1 billion
for the three months and six months ended June 30, 2001 and $5.1 billion and $9.6 billion for the three months and six months ended June 30, 2000, respectively.

BlackRock, Inc.
Component Changes in Assets Under Management
(Dollar amounts in millions)

(unaudited)



---

|                                          | Three months ended |         | Six months ended |  
|----------------------------------------- | ------------------ | ------- | ---------------- | -
|                                          | June 30,           |         | June 30,         |  
|                                          |                    | 2001    |                  |  
|                                          |                    |         |                  |  
|Separate Accounts                         |                    |         |                  |  
|Beginning assets under management         | $                  | 132,711 |                  | $
|Net subscriptions                         |                    | 6,871   |                  |  
|Market appreciation                       |                    | 423     |                  |  
|                                          |                    |         |                  |  
|Ending assets under management            | 140,005            |         | 111,672          |  
|                                          |                    |         |                  |  
|Mutual Funds                              |                    |         |                  |  
|Beginning assets under management         |                    | 68,925  |                  |  
|Net subscriptions (redemptions)           |                    | 3,301   |                  |  
|Market appreciation (depreciation)        |                    | 463     |                  |  
|                                          |                    |         |                  |  
|Ending assets under management            |                    | 72,689  |                  |  
|                                          |                    |         |                  |  
|                                          |                    |         |                  |  
|Total                                     | $                  | 212,694 |                  | $
|                                          |                    |         |                  |  
|                                          |                    |         |                  |  
|Net subscriptions                         | $                  | 10,172  |                  |  
|% of Change in AUM from net subscriptions |                    | 92.0%   |                  |  
|                                          |                    |         |                  |  

---

-12-

BlackRock, Inc.

Assets Under Management

Quarterly Trend (Dollar amounts in millions)

(unaudited)

|                                                                                                                        | Quarter Ended |         |        
|----------------------------------------------------------------------------------------------------------------------- | ------------- | ------- | -------
|                                                                                                                        |               |         |        
|                                                                                                                        | 2000          |         |        
|                                                                                                                        |               |         |        
|                                                                                                                        |               | June 30 |        
|                                                                                                                        |               |         |        
|Separate Accounts                                                                                                       |               |         |        
|Fixed Income                                                                                                            |               |         |        
|Beginning assets under management                                                                                       | $             | 77,595  |        
|Net subscriptions                                                                                                       |               | 5,756   |        
|Market appreciation                                                                                                     |               | 599     |        
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          |               | 83,950  |        
|                                                                                                                        |               |         |        
|Liquidity                                                                                                               |               |         |        
|Beginning assets under management                                                                                       |               | 7,811   |        
|Net subscriptions (redemptions)                                                                                         |               | (779    | )      
|Market appreciation                                                                                                     |               | 20      |        
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          |               | 7,052   |        
|                                                                                                                        |               |         |        
|Liquidity-Securities lending                                                                                            |               |         |        
|Beginning assets under management                                                                                       |               | 11,299  |        
|Net subscriptions (redemptions)                                                                                         |               | (644    | )      
|Market appreciation                                                                                                     |               | -       |        
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          |               | 10,655  |        
|                                                                                                                        |               |         |        
|Equity                                                                                                                  |               |         |        
|Beginning assets under management                                                                                       |               | 6,414   |        
|Net subscriptions                                                                                                       |               | 1,387   |        
|Market depreciation                                                                                                     |               | (180    | )      
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          |               | 7,621   |        
|                                                                                                                        |               |         |        
|Alternative investment products                                                                                         |               |         |        
|Beginning assets under management                                                                                       |               | 2,230   |        
|Net subscriptions                                                                                                       |               | 95      |        
|Market appreciation (depreciation)                                                                                      |               | 69      |        
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          |               | 2,394   |        
|                                                                                                                        |               |         |        
|Total Separate Accounts                                                                                                 |               |         |        
|Beginning assets under management                                                                                       | 105,349       |         | 111,672
|Net subscriptions (redemptions)                                                                                         |               | 5,815   |        
|Market appreciation                                                                                                     |               | 508     |        
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          | $             | 111,672 |        
|                                                                                                                        |               |         |        
|                                                                                                                        |               |         |        
|Mutual Funds                                                                                                            |               |         |        
|BlackRock Funds                                                                                                         |               |         |        
|Beginning assets under management                                                                                       | $             | 29,280  |        
|Net subscriptions (redemptions)                                                                                         |               | (168    | )      
|Market appreciation (depreciation)                                                                                      |               | (850    | )      
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          |               | 28,262  |        
|                                                                                                                        |               |         |        
|BlackRock Global Series                                                                                                 |               |         |        
|Beginning assets under management                                                                                       |               | -       |        
|Net subscriptions                                                                                                       |               | -       |        
|Market appreciation (depreciation)                                                                                      |               | -       |        
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          |               | -       |        
|                                                                                                                        |               |         |        
|BPIF*                                                                                                                   |               |         |        
|Beginning assets under management                                                                                       |               | 25,755  |        
|Net subscriptions (redemptions)                                                                                         |               | (140    | )      
|Exchanges                                                                                                               |               | -       |        
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          |               | 25,615  |        
|                                                                                                                        |               |         |        
|Closed End                                                                                                              |               |         |        
|Beginning assets under management                                                                                       |               | 7,560   |        
|Net redemptions                                                                                                         |               | (30     | )      
|Market appreciation                                                                                                     |               | 53      |        
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          |               | 7,583   |        
|                                                                                                                        |               |         |        
|Short Term Investment Funds (STIF)*                                                                                     |               |         |        
|Beginning assets under management                                                                                       |               | 4,629   |        
|Net subscriptions (redemptions)                                                                                         |               | (424    | )      
|Exchanges                                                                                                               |               | -       |        
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          |               | 4,205   |        
|                                                                                                                        |               |         |        
|Total Mutual Funds                                                                                                      |               |         |        
|Beginning assets under management                                                                                       |               | 67,224  |        
|Net subscriptions (redemptions)                                                                                         |               | (762    | )      
|Market appreciation (depreciation)                                                                                      |               | (797    | )      
|                                                                                                                        |               |         |        
|Ending assets under management                                                                                          | $             | 65,665  |        
|                                                                                                                        |               |         |        
|                                                                                                                        |               |         |        
|* During the fourth quarter of 2000, $4.1 billion of STIF assets under management were exchanged into the BPIF product. |               |         |        

-13-

> Operating results for the three months ended June 30, 2001 as compared with the three months ended June 30, 2000.
> 
> Revenue
> 
> Total revenue for the three months ended June 30, 2001 increased $22.7 million or 20% to $135.3 million compared with $112.6 million for the three months ended June 30, 2000. Investment advisory and administration fees
> increased $19.0 million or 18% to $126.4 million for the three months ended June 30, 2001, compared with $107.4 million for the three months ended June 30, 2000. The growth in investment advisory and administration fees was primarily due to an
> increase in assets under management of 20% to $212.7 billion at June 30, 2001 and increased performance fees.

---

|                                                  | Three months ended

June 30, |  | Variance | 
|------------------------------------------------- | ---------------------------- |  | -------- | 
|                                                  |                              |  |          | 
|Dollar amounts in thousands                       | 2001                         |  | 2000     | 
|                                                  |                              |  |          | 
|                                                  | (unaudited)                  |  |          | 
|Investment advisory and administration fees:      |                              |  |          | 
|Mutual funds                                      | $54,791                      |  | $56,228  | 
|Separate accounts                                 | 71,624                       |  | 51,204   | 
|                                                  |                              |  |          | 
|Total investment advisory and administration fees | 126,415                      |  | 107,432  | 
|Other income                                      | 8,847                        |  | 5,139    | 
|                                                  |                              |  |          | 
|Total revenue                                     | $135,262                     |  | $112,571 | 
|                                                  |                              |  |          | 

---

> Mutual fund advisory and administration fees decreased $1.4 million or 3% to $54.8 million for the three months ended June 30, 2001, compared with $56.2 million for the three months ended June 30, 2000. The decrease in
> mutual fund revenue was primarily due to a $3.7 billion or 13% decline in assets in theBlackRock Fundspartially offsetby strong revenue growth in the BPIF funds as assets rose $12.2 billion or 41% adjusted for exchanges. Separate account advisory fees increased $20.4 million or 40% to $71.6 million for the three months ended June 30, 2001,
> compared with $51.2 million for the three months ended June 30, 2000. Separate account base advisory fees increased $13.4 million or 33% to $53.7 million for the three months ended June 30, 2001 compared with $40.3 million for the three months ended
> June 30, 2000 primarily due to a $28.3 billion or 25% increase in assets under management. Performance fees of $17.9 million for the three months ended June 30, 2001 increased $7.0 million as compared with $10.9 million for the three months ended
> June 30, 2000 as a result of continued strong investment performance. This represented the fourth consecutive quarter in which alternative product performance fees reflected results that exceeded targeted returns. Other income of $8.8 million for
> the three months ended June 30, 2001 increased $3.7 million or 72% compared with $5.1 million for the three months ended June 30, 2000 primarily due to increased sales ofBlackRock Solutionsproducts.
> 
> 
> 
> -14-



> Expense
> 
> Total expense increased $14.3 million or 18% to $92.6 million for the three months ended June 30, 2001, compared with $78.3 million for the three months ended June 30, 2000. The change was primarily the result of
> increases in employee compensation and benefits and general and administration expenses, partially offset by a decrease in fund administration and servicing costs-affiliates.



---

|                                                   | Three months ended
June 30, |         | Variance |        
|-------------------------------------------------- | --------------------------- | ------- | -------- | -------
|                                                   |                             |         |          |        
|Dollar amounts in thousands                        | 2001                        |         | 2000     |        
|                                                   |                             |         |          |        
|                                                   | (unaudited)                 |         |          |        
|Employee compensation and benefits                 |                             | $55,534 |          | $42,680
|Fund administration and servicing costs-affiliates |                             | 15,722  |          | 18,450 
|General and administration                         |                             | 18,684  |          | 14,605 
|Amortization of intangible assets                  |                             | 2,614   |          | 2,514  
|                                                   |                             |         |          |        
|Total expense                                      |                             | $92,554 |          | $78,249
|                                                   |                             |         |          |        

---



> Employee compensation and benefits increased $12.9 million due to increased incentive compensation of $5.9 million reflecting accruals based on the growth of operating income, $2.8 million reflecting direct incentives
> on alternative product performance fees and $4.2 million related to salary and benefits. Salary and benefit cost increases were the result of a 19% increase in full-time employees. For the three months ended June 30, 2001, fund administration and
> servicing costs-affiliates of $15.7 million declined $2.7 million or 15% due to lower levels of PNC client assets invested in theBlackRock Funds.General and administration
> expenses increased $4.1 million or 28% to $18.7 million for the three months ended June 30, 2001 compared with $14.6 million for the three months ended June 30, 2000 largely due to new business activity, increased headcount and corporate space and
> technology investments.

|                                         | Three months ended
June 30, |         | Variance |        
|---------------------------------------- | --------------------------- | ------- | -------- | -------
|                                         |                             |         |          |        
|General and administration expense:      | 2001                        |         | 2000     |        
|                                         |                             |         |          |        
|                                         | (unaudited)                 |         |          |        
|Marketing and promotional                |                             | $5,399  |          | $4,399 
|Occupancy expense                        |                             | 2,871   |          | 2,181  
|Technology                               |                             | 3,499   |          | 2,155  
|Other general and administration expense |                             | 6,915   |          | 5,870  
|                                         |                             |         |          |        
|Total general and administrative expense |                             | $18,684 |          | $14,605
|                                         |                             |         |          |        

---



-15-







> Marketing and promotional expenses of $5.4 million for the three months ended June 30, 2001 increased $1.0 million or 23% primarily due to higher travel and entertainment costs associated with the Companys
> institutional marketing efforts. Occupancy expense of $2.9 million for the three months ended June 30, 2001 increased $.7 million due to increased rent and related costs associated with corporate facility expansion, particularly BlackRocks new
> offices in Wilmington, Delaware, Edinburgh, Scotland, 40 East 52ndStreet, New York, and Hong Kong. Technology expense increased approximately $1.3 million or 62% to $3.5 million for the three months ended June 30, 2001 due to the completion of a second computer facility in Delaware and
> equipment purchases to support the growth ofBlackRock Solutions,which resulted in higher depreciation expense. Other expenses increased $1.0 million or 18% to $6.9 million
> for the three months ended June 30, 2001 primarily due to professional service costs associated with new products.
> 
> Operating Income and Net Income
> 
> Operating income was $42.7 million for the three months ended June 30, 2001, representing an $8.4 million or 24% increase compared with the three months ended June 30, 2000. Non-operating income increased $1.1 million
> to $2.4 million for the three months ended June 30, 2001 compared with the three months ended June 30, 2000. The rise was primarily the result of an increase in investment income reflecting investment of the Companys excess operating cash.
> Income tax expense was $18.9 million and $14.8 million, representing effective tax rates of 41.9% and 41.5% for the three months ended June 30, 2001 and June 30, 2000. Net income totaled $26.2 million for the three months ended June 30, 2001
> compared with $20.9 million for the three months ended June 30, 2000, representing an increase of $5.3 million or 26%.

-16-



> Operating results for the six months ended June 30, 2001 as compared with the six months ended June 30, 2000.
> Revenue
> Total revenue for the six months ended June 30, 2001 increased $48.3 million or 22% to $269.0 million compared with $220.6 million for the six months ended June 30, 2000. Investment advisory and administration fees
> increased $42.4 million or 20% to $251.7 million for the six months ended June 30, 2001, compared with $209.3 million for the six months ended June 30, 2000. The growth in investment advisory and administration fees was primarily due to a 20%
> increase in assets under management to $212.7 billion at June 30, 2001 and increased performance fees.



---

|                                                  | Six months ended
June 30, |  | Variance | 
|------------------------------------------------- | ------------------------- |  | -------- | 
|                                                  |                           |  |          | 
|Dollar amounts in thousands                       | 2001                      |  | 2000     | 
|                                                  |                           |  |          | 
|                                                  | (unaudited)               |  |          | 
|Investment advisory and administration fees:      |                           |  |          | 
|Mutual funds                                      | $109,707                  |  | $115,328 | 
|Separate accounts                                 | 142,009                   |  | 93,974   | 
|                                                  |                           |  |          | 
|Total investment advisory and administration fees | 251,716                   |  | 209,302  | 
|Other income                                      | 17,255                    |  | 11,329   | 
|                                                  |                           |  |          | 
|Total revenue                                     | $268,971                  |  | $220,631 | 
|                                                  |                           |  |          | 

---

> Mutual fund advisory and administration fees decreased $5.6 million or 5% to$109.7 million for the six months ended June 30, 2001, compared with
> $115.3 million for the six months ended June 30, 2000. The decrease in mutual fund revenue was primarily due to a $13.0 million decline in advisory and administration fees in theBlackRock Fundsto $64.3 million largely due to market depreciation in equity assets, which was partially offsetby an$11.1 million increase in BPIF revenue to $29.7 million as a result of strong net asset growth. Separate account advisory fees increased $48.0 million or 51% to $142.0 million for the six months ended June 30, 2001, compared with
> $94.0 million for the six months ended June 30, 2000. Separate account base advisory fees increased $26.8 million or 34% to $105.4 million for the six months ended June 30, 2001 compared with $78.6 million for the six months ended June 30, 2000
> primarily due to a $28.3 million or 25% increase in assets under management. Performance fees of $36.6 million for the six months ended June 30, 2001 increased $21.2 million compared with $15.4 million for the six months ended June 30, 2000 due to
> continued strong investment performance. Other income of $17.2 million increased $5.9 million or 52% for the six months ended June 30, 2001 compared with $11.3 million for the six months ended June 30, 2000 primarily due to increased sales ofBlackRock Solutionsproducts.

-17-

Expense

Total expense increased $30.1 million or 20% to $184.3 million for the six months ended June 30, 2001, compared with $154.2 million for the six months ended June 30, 2000. The change was primarily the result of increases
in employee compensation and benefits and general and administration expenses, partially offset by a decrease in fund administration and servicing costs-affiliates.



|                                                  
|--------------------------------------------------
|                                                  
|                                                  
|                                                  
|                                                  
|Dollar amounts in thousands                       
|                                                  
|                                                  
|                                                  
|Employee compensation and benefits                
|Fund administration and servicing costs-affiliates
|General and administration                        
|Amortization of intangible assets                 
|                                                  
|Total expense                                     
|                                                  
|                                                  
|                                                  

Employee compensation and benefits increased $27.6 million due to increased incentive compensation of $13.8 million reflecting accruals based on the growth of operating income, $7.7 million reflecting direct incentives
on alternative product performance fees and $6.1 million related to salary and benefits. Salary and benefit cost increases were the result of a 19% increase in full-time employees. For the six months ended June 30, 2001, fund administration and
servicing costs-affiliates declined $5.8 million or 15% due to lower levels of PNC client assets invested in theBlackRock Funds. General and administration expenses increased
$8.0 million or 29% to $35.7 million for the six months ended June 30, 2001 compared with $27.7 million for the six months ended June 30, 2000 largely due to new business activity, increased headcount and corporate space and technology investments.



|                                        
|----------------------------------------
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|                                        
|General and administration expense:     
|Marketing and promotional               
|Occupancy expense                       
|Technology                              
|Other general and administration expense
|                                        
|Total general and administration expense
|                                        

---

-18-



> Marketing and promotional expenses of $10.2 million for the six months ended June 30, 2001 increased $1.9 million or 23% primarily due to higher travel and entertainment costs for institutional marketing activities and
> new products. Occupancy expense of $5.4 million for the six months ended June 30, 2001 increased $1.0 million due to higher occupancy expenses associated with corporate facility expansion, particularly in Wilmington, Delaware, Edinburgh, Scotland,
> 40 East 52ndStreet, New York and Hong Kong. Technology expenses increased approximately $2.5 million or 59% to $6.7 million for the six months ended June 30, 2001 as a result of higher depreciation charges associated with the
> completion of a second computer facility in Delaware and equipment purchases to support the growth ofBlackRock Solutions. Other expenses increased $2.7 million or 25% for the
> six months ended June 30, 2001 primarily due to higher professional service costs associated with new products.
> 
> Operating Income and Net Income
> 
> Operating income was $84.6 million for the six months ended June 30, 2001, representing an $18.2 million or 27% increase compared with the six months ended June 30, 2000. Non-operating income increased $2.1 million to
> $4.1 million for the six months ended June 30, 2001 as compared with the six months ended June 30, 2000. The rise was primarily the result of an increase in interest and dividend income reflecting investment of the Companys excess operating
> cash. Income tax expense was $37.0 million and $28.4 million, representing effective tax rates of 41.7% and 41.5% for the six months ended June 30, 2001 and June 30, 2000. Net income totaled $51.7 million for the six months ended June 30, 2001
> compared with $40.1 million for the six months ended June 30, 2000, representing an increase of $11.6 million or 29%.
> 
> Liquidity and Capital Resources
> 
> BlackRock meets its working capital requirements through cash generated by its operating activities. Cash provided by the Companys operating activities totaled $60.5 million for the six months ended June 30, 2001.
> BlackRock expects that cash flows provided by operating activities will continue to serve as the principal source of working capital for the near future.
> 
> Net cash flow used in investing activities was $145.8 million for the six months ended June 30, 2001. Capital expenditures for property and equipment was $18.0 million for the six months ended June 30, 2001 and
> primarily reflected construction costs for the new facility in Wilmington, Delaware, including a second computer facility, leasehold improvements and the purchase of equipment to support the growth ofBlackRock
> Solutions.Net investments were $127.7 million for the six months ended June 30, 2001, which included a $120.0 million investment in theBlackRock FundsIntermediate Bond Portfolio, and seed investments made in certain new alternative investment products.
> 
> Net cash flow used in financing activities was $7.6 million for the six months ended June 30, 2001. Financing activities primarily represented treasury stock activity for the six months ended June 30, 2001. On January
> 31, 2001, in connection with the BlackRock, Inc. Long-Term Deferred Compensation Plan, BlackRock repurchased approximately 142,000 shares of class A common stock at a fair market value of $40.33 per share from certain employees to facilitate
> required employee income tax payments. On May 23, 2001, the Company paid $1.5 million of the acquired management contract obligation related to the agreement and plan of merger of CORE Cap, Inc. with Anthracite Capital, Inc., a BlackRock managed
> REIT.

-19-



> On January 8, 2001, the Company entered into a commitment to invest $8.4 million in Magnetite Asset Investors III, L.L.C., an alternative investment fund sponsored by BlackRock of which $1.7 million remained unfunded as
> of June 30, 2001.
> 
> On May 2, 2001, BlackRocks Board of Directors authorized BlackRock to repurchase up to 500,000 of its outstanding shares of class A common stock from time to time as market and business conditions warrant in open
> market or privately negotiated transactions. To date, BlackRock has not purchased any shares of its outstanding class A common stock under this repurchase program.
> 
> On July 20, 2001, the Company entered into a commitment to invest $5.4 million in Carbon Capital, Inc., an alternative investment fund sponsored by BlackRock.
> 
> Total capital at June 30, 2001 was $428.9 million and was comprised entirely of stockholders equity.
> 
> Interest Rates
> 
> The value of assets under management is affected by changes in interest rates. Since BlackRock derives the majority of its revenues from investment advisory fees based on the value of assets under management,
> BlackRocks revenues may be adversely affected by changing interest rates. In a period of rapidly rising interest rates, BlackRocks assets under management would likely be negatively affected by reduced asset values and increased
> redemptions.
> 
> Inflation
> 
> The majority of BlackRocks revenues are based on the value of assets under management. There is no predictable relationship between the rate of inflation and the value of assets under management by BlackRock,
> except as inflation may affect interest rates. BlackRock does not believe inflation will significantly affect its compensation costs, as they are substantially variable in nature. However, the rate of inflation may affect BlackRocks expenses
> such as information technology and occupancy costs. To the extent inflation results in rising interest rates and has other effects upon the securities markets, it may adversely affect BlackRocks results of operations by reducing
> BlackRocks assets under management, revenues or otherwise.

-20-



> Forward-looking Statements
> 
> This report and other statements by BlackRock include forward-looking statements within the meaning of the Private Securities Litigation Reform Act with respect to the outlook for earnings and revenues, other future
> financial or business performance, strategies and expectations. Forward-looking statements are typically identified by words or phrases such as believe, expect, anticipate, intend,
> estimate, position, target, mission, assume, achievable, potential, strategy, goal, objective, plan,
> aspiration, outlook, outcome, continue, remain, maintain, strive, trend, and similar expressions, or future or conditional verbs such as
> will, would, should, could, may, or similar expressions.
> 
> BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock
> assumes no duty to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
> 
> In addition to factors previously disclosed in BlackRocks Securities and Exchange Commission (the SEC) reports and those identified elsewhere in this report, the following factors, among others, could
> cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes in economic or industry conditions, the
> interest rate environment or financial and capital markets, which could result in reduced demand for products or services or reduced value of assets under management; (3) the investment performance of BlackRock's advised or sponsored investment
> products and separately managed accounts; (4) the impact of increased competition; (5) the impact of capital improvement projects; (6) the impact of future acquisitions; (7) the extent and timing of any share repurchases; (8) the impact, extent and
> timing of technological changes; and (9) the impact of legislative and regulatory actions and reforms.
> 
> Exhibit 99.1 to BlackRocks Annual Report on Form 10-K for the year ended December 31, 2000 and BlackRocks subsequent reports filed with the Securities and Exchange Commission, accessible on the SECs
> website at http://www.sec.gov, discuss these factors in more detail and identify additional factors that can affect forward-looking statements.

-21-



Item 3. Quantitative and Qualitative Disclosures About Market Risk

> In the normal course of its business, BlackRock is exposed to the risk of interest rate, securities market and general economic fluctuations.
> 
> BlackRocks investments available for sale consist primarily ofBlackRock Fundsand certain institutional and private placement portfolios
> (alternative investment products). Occasionally, BlackRock invests in new mutual funds (seed investments) sponsored by BlackRock in order to provide investable cash to the new mutual fund to establish a performance history. As of June
> 30, 2001, the fair market value of seed investments was $22.0 million. The fair market value of BlackRocks other investments was $120.4 million as of June 30, 2001 and is comprised entirely of an investment in the Intermediate Bond Portfolio
> of theBlackRock Funds. The Intermediate Bond Portfolios assets are invested primarily in investment grade intermediate bonds with maturities from 2 to 10
> years.
> 
> BlackRock does not hold any derivative securities to hedge its investments. These investments expose BlackRock to credit and interest rate risk. However, the Company does not believe that the effect of reasonably
> possible near-term changes in default rates or interest rates on its financial position, results of operations or cash flow would be material.

-22-

PART II  OTHER INFORMATION

Item 1. Legal Proceedings

> BlackRock and its subsidiaries, in the normal course of business, are subject to various pending and threatened lawsuits in which claims for monetary damages are asserted. Management, after consultation with legal
> counsel, does not at the present time anticipate that the ultimate aggregate liability, if any, arising out of such lawsuits will have a material adverse effect on BlackRock's financial position. At the present time, management is not in a position
> to determine whether any such pending or threatened litigation will have a material adverse effect on BlackRock's results of operations in any future reporting period.

Item 4. Submission of Matters to a Vote of Security Holders

> The annual meeting of stockholders of BlackRock was held on May 2, 2001, for the purpose of considering and acting upon the following:
> Three Class II directors were elected and the votes cast for or against/withheld were as follows:

|                     | Aggregate Votes
|-------------------- | ---------------
|                     |                
|Nominee              | For            
|                    
|James E. Rohr        | 271,896,649    
|Ralph L. Schlosstein | 270,280,131    
|Lawrence M. Wagner   | 271,927,059    

> Two matters were approved and the votes cast for or against and the abstentions were as follows:



|                                | Aggregate Votes |        
|------------------------------- | --------------- | -------
|                                |                 |        
|Matter                          | For             | Against
|                                |                
|Adoption of the BlackRock, Inc. |                 |        
|2001 Employee Stock Purchase    | 270,932,103     |        
|Plan                            |                 |        
|Approval of amendment to the    |                 |        
|BlackRock, Inc. 1999 Stock      |                 |        
|Award and Incentive Plan        | 269,228,500     |        

> There were no broker non-votes.
> With respect to the preceding matters, holders of BlackRock's class A common stock, and class B common stock voted together as a single class. Holders of BlackRocks class A common stock are entitled to one vote
> per share. Holders of BlackRocks class B common stock are entitled to five votes per share.

-23-

|Item 6. Exhibits and Reports on Form 8-K
|----------------------------------------
|(a)                                     
|                                        
|(b)                                     

-24-

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

|                      | BLACKROCK, INC.
|--------------------- | ---------------
|                      | (Registrant)   
|                      |                
|                      | By:            
|                      |                
|Date: August 13, 2001 |                
|                      |                

-25-