2018-09-30 14:34:00 Sun ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
Goldman, JPMorgan, Bank of America, Credit Suisse, Morgan Stanley, and UBS face an antitrust lawsuit. In this lawsuit, a U.S. judge alleges the illegal conspiracy that they have kept stock loans in the stone age to stifle competition in the $2 trillion stock-lending market. These large banks boycott the startup platforms AQS, Data Explorers, and SL-x in order to maintain their competitive advantage in stock loans. In this way, these banks maintain monopoly control over stock loans and so charge excessive fees to investors and short-sellers.
A counter argument sheds skeptical light on the court decision that continuing to execute stock loans under the current rules and standards somehow amounts to an illegal conspiracy. This alternative argument suggests that these class actions against the banks would result in an unreasonable restraint on trade. This dispute boils down to whether there is sufficient evidence of collusion among the plaintiffs in direct competition with the fresh startup platforms.
Stock loans are quite important to short-sellers when the investor borrows stocks to immediately sell them at a premium. Institutional investors with substantial stock positions can profit from lending out these stocks, whereas, borrowers aim to profit by buying the stocks at lower prices later.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2019-04-03 11:35:00 Wednesday ET
A Florida fintech group Fidelity Information Services initiates the largest $43 billion acquisition of the e-commerce payments processor Worldpay. Fidelity
2017-02-25 06:44:00 Saturday ET
As the White House economic director, Gary Cohn suggests that the Trump administration will tackle tax cuts after the administration *repeals and replaces*
2019-02-17 14:40:00 Sunday ET
U.S. economic inequality increases to pre-Great-Depression levels. U.C. Berkeley economics professor Gabriel Zucman empirically finds that the top 0.1% rich
2017-11-29 07:42:00 Wednesday ET
The octogenarian billionaire and activist investor Carl Icahn mulls over steps to shake up the board of SandRidge Energy after the oil-and-gas company adopt
2019-07-27 17:37:00 Saturday ET
Capital gravitates toward key profitable mutual funds until the marginal asset return equilibrates near the core stock market benchmark. As Stanford finance
2019-06-09 11:29:00 Sunday ET
St Louis Federal Reserve President James Bullard indicates that his ideal baseline scenario remains a mutually beneficial China-U.S. trade deal. Bullard ind