Jan 9 (Reuters) - BlackRock ( BLK ) has asked the U.S.

Federal Deposit Insurance Corporation to extend its deadline to

reach an agreement on how the agency would oversee the giant

asset manager's investments in FDIC-regulated banking

organizations from Friday until March 31, according to a letter

the firm sent to regulators on Thursday and obtained by Reuters.

The letter is the latest move in a months-long tug of war

between the FDIC and the biggest managers of index-based mutual

funds and exchange-traded funds over the rules governing their

passive investments in FDIC-regulated banks. In late December,

Vanguard Investments hammered out terms of such a passivity

agreement with the FDIC, which immediately afterward asked

BlackRock ( BLK ) to sign a very similar agreement by the Friday

deadline.

"We are not aware of any imminent or ongoing issues that

would warrant hastening the finalization of a completely new

regulatory framework in a two-week period," wrote Ben Tecmire,

head of U.S. regulatory affairs at BlackRock ( BLK ), in the letter to

the FDIC.

That is especially true, he added, since "all the banks that

would be covered by your proposed agreement with BlackRock ( BLK ) are

subject to regulatory oversight by the Federal Reserve."

In the letter, Tecmire said BlackRock ( BLK ) wants to avoid

"inconsistent and uncertain requirements" that might result from

the firm's bank holdings being overseen by multiple bank

regulators.

He said in the letter that BlackRock's ( BLK ) understanding is that

the agreement between the FDIC and Vanguard was reached only

after several months of negotiation. An individual familiar with

the matter said BlackRock's ( BLK ) attempts in the final months of 2024

to meet with FDIC officials had been rebuffed.

The FDIC did not respond to a request for comment on the

letter or the negotiations.