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.
2022-09-15 11:38:00 Thursday ET
Capital structure choices for private firms The Kauffman Firm Survey (KFS) database provides comprehensive panel data on 5,000+ American private firms fr
2019-08-04 08:26:00 Sunday ET
U.S. and Chinese trade negotiators hold constructive phone talks after Presidents Trump and Xi exchange reconciliatory gestures at the G20 summit in Japan.
2019-09-13 10:37:00 Friday ET
China allows its renminbi currency to slide below the key psychologically important threshold of 7-yuan per U.S. dollar. A currency dispute between the U.S.
2019-11-15 13:34:00 Friday ET
The Economist offers a special report that the new normal state of economic affairs shines fresh light on the division of labor between central banks and go
2022-05-25 09:31:00 Wednesday ET
Net stock issuance theory and practice Net equity issuance can be in the form of initial public offering (IPO) or seasoned equity offering (SEO). This l
2018-02-01 07:38:00 Thursday ET
U.S. senators urge the Trump administration with a bipartisan proposal to prevent the International Monetary Fund (IMF) from bailing out several countries t