Copying and distributing are prohibited without permission of the publisher
Legal brief
18 December 2007
Stock loan under fire
Read more:
stock loan
law suit
SEC
DOJ
cases
38 people charged
Stock loan traders who worked at the desks of several well-known banks and brokerage firms recently were named as defendants in parallel civil and criminal proceedings filed by the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) respectively. Both cases were filed in late September 2007. The SEC charged 38 people in the civil case. The DOJ brought additional criminal charges against fifteen of the 38 traders.
Employees who act as traders in the securities lending departments at financial institutions typically do not transact business with the public and normally transact business only with their counterparts at other firms. They are not required to carry professional securities licenses and often they are not licensed. Despite the large dollar volume of securities lending transactions, the business is largely unregulated as compared to transactions in the public markets.
However, the profile of the securities lending business has risen...
Access to this content is denied because you are not logged in. Please login to view this content
Already have an account?
Subscribe
Subscribers have unlimited access to all current and archive content. Start your
subscription today - click on the button below.
Free trial
Taking a free trial will give you access to the current issue for two weeks (excluding
some surveys and articles). Start your free trial today.
