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.
2019-03-31 11:40:00 Sunday ET
AYA Analytica free finbuzz podcast channel on YouTube March 2019 In this podcast, we discuss several topical issues as of March 2019: (1) Sargent-Wallac
2025-09-13 12:23:00 Saturday ET
Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund
2018-05-08 13:39:00 Tuesday ET
The Trump administration weighs the pros and cons of a potential mega merger between AT&T and Time Warner. Recent stock prices show favorable trends for
2019-04-09 11:29:00 Tuesday ET
The U.S. Treasury yield curve inverts for the first time since the Global Financial Crisis. The key term spread between the 10-year and 3-month U.S. Treasur
2023-05-31 11:27:00 Wednesday ET
What are the top global risks in trade, finance, and technology? In this macro report, we focus on the current global risks from inflation and growth con
2019-07-29 11:33:00 Monday ET
Blackrock asset research director Andrew Ang shares his economic insights into fundamental factors for global asset management. As Ang indicates in an inter