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.
2017-06-27 05:40:00 Tuesday ET
These famous quotes of self-made billionaires are inspirational words of wisdom on financial management, innovation, and entrepreneurship. For financial
2018-12-03 10:40:00 Monday ET
Bank of England publishes its latest insights into the economic impact of Brexit on British real productivity, capital investment, and labor supply as of 20
2018-04-07 09:36:00 Saturday ET
Facebook CEO Mark Zuckerberg testifies in Congress to rise up to the challenge of public outrage in response to the Cambridge Analytica data debacle and use
2019-01-29 10:33:00 Tuesday ET
Global trade transforms from labor cost arbitrage to high-skill knowledge work. In fact, multinational manufacturers have been trying to create global suppl
2019-09-01 10:31:00 Sunday ET
Most artificial intelligence applications cannot figure out the intricate nuances of natural language and facial recognition. These intricate nuances repres
2027-01-31 12:25:00 Sunday ET
In recent decades, many governments have chosen to run high fiscal deficits on top of sovereign debt mountains so that greater government intervention still