BlackRock is forking out $13.5 billion to buy Barclays Global Investors, forming the largest money manager in the world, reports Bloomberg News. The acquisition means BlackRock will manage $2.7 trillion in assets -- more than the Federal Reserve.

BlackRock has drawn scrutiny for the scope of its reach throughout federal bailout programs; it helps manage many of the Treasury Department's big investments, like AIG, the New York Times reported last month. In addition, Blackrock announced in March that it would participate in the government's toxic-asset program as a private investor. (A BlackRock managing director told the Times that the company is very sensitive to potential conflicts of interest.)

Other links this morning:
From the Details of BofA-Merrill Deal, Lawmakers Draw Arguments for Reform (WaPo)
TARP Repayments to Start Next Week (WSJ)
Hartford Gets $3.4 Billion in TARP Funds (Reuters)
Citigroup Bailout Pays Taxpayers Three Times as Much as S&P 500 (Bloomberg)
GM Appears to Close In On a Deal to Sell Saab (WSJ)
Auto Dealers at Risk Turn to Washington (NYT)
Treasury-Citigroup Pact Allows Switch to Common Stock (Dow Jones)