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.
2018-11-03 11:36:00 Saturday ET
Apple adds fresh features to its new iPad Pro and MacBook Air in addition to its prior suite of iPhone XS, iPhone XS Max, and iPhone XR back in September 20
2018-07-25 11:41:00 Wednesday ET
President Trump hails and touts America's new high real GDP economic growth in 2018Q2. The U.S. is now a $20+ trillion economy, and America hits this mi
2020-03-12 09:32:00 Thursday ET
Google CEO Eric Schmidt and his co-authors show the innovative corporate culture and mission of the Internet search tech titan. Eric Schmidt, Jonathan Ro
2020-08-12 07:25:00 Wednesday ET
Most sustainably successful business leaders make a mark in the world, create a positive impact, and challenge the status quo. Jerry Porras, Stewart Emer
2018-09-11 18:36:00 Tuesday ET
President Trump tweets that Apple can avoid tariff consequences by shifting its primary supply chain from China to America. These Trump tariffs on another $
2018-06-04 08:38:00 Monday ET
Microsoft acquires GitHub, a software development platform that has been widely shared-and-used by more than 28 million programmers worldwide. GitHub's