Impact of Regulatory Changes 2008

The events of recent weeks have led to securities lending and short selling hitting the front pages of the financial press. The industry is also managing through its largest counterpart default in history. Beneficial owners (lenders who own assets) are reacting in different ways – some are comfortable with recent events, probably due to good communication with their counterparts or lending agents, whilst others have struggled to get reliable and timely information. Without exception, lenders will have considered if securities lending is worth it – does the return outweigh the risks and the internal/external pressure from those who have an opinion, or a fiduciary responsibility, regarding the programme?