Discover how securities lending works, its role in markets, key processes, pros and cons, and potential risks, including recent industry developments and scandals.

“The biggest risk related to private lending is that we don’t even properly grasp what the problem is.” Patrick Corrigan, a professor at the University of Notre Dame Law School, said in a recent video ...

U.S. banks’ loans to the nonbank financial sector exceeded $1.14 trillion in Q1 2025, with non-depository lending growing by an average of 26% annually since 2012 as “shadow banking” surges. Banks are ...

The UK House of Lords Financial Regulation Committee released a report in January titled *Unknown Unknowns* (未知, Unknown Unknowns). The 66-page report, produced with the Bank of England and the ...

Securities lending enables earning from stocks by renting them out, not selling. It underpins short-selling, providing essential market liquidity and enabling profit via price drops. Brokerages ...

Part of my career was with a pension manager who allowed their holdings to be loaned out so they could generate extra income for the pension fund. That came to a screeching halt with the collapse of ...