Re:u/DeepFuckingValue and the GameStop Reddit mania
by PeterisP on Friday January 29, 2021 @09:17PM
(#25965354)
Well, the other fat cats will have a claim on a fair share in the assets of the bankrupted; the WSB investors would not have any claim whatsoever on the assets of a bankrupt hedge fund who shorted the same stock - they will have the stocks they bought, the fund does not owe them anything, the broken promise to buy and return loaned shares was to some broker, not to any retail investors.
[ Parent
| on HN ]
Re:u/DeepFuckingValue and the GameStop Reddit mania
by jojobas on Saturday January 30, 2021 @01:15AM
(#25966717)
I believe anyone's shares can be lent out by their brokerage. That might differ broker by broker but that's the general idea, there's no dedicated "other side of the short" as such.
Re:u/DeepFuckingValue and the GameStop Reddit mania
by joncrane on Saturday January 30, 2021 @07:00AM
(#25968393)
When I signed up for IB I had to check a box that permits IB to loan out my shares for a small fee. I'm not sure if a broker can loan out a client's shares without the client's approval.
It may be fine print in the TOS, though.