Financial Times FT.com

Regulating short-selling

Shorting ‘makes billions’ for fund managers

By Deborah Brewster in London

Published: July 17 2008 22:16 | Last updated: July 17 2008 22:16

Conservative fund management firms and custody banks are making billions of dollars from short-selling by lending stocks to facilitate such trades in exchange for lucrative fees.

Even as short-sellers attract blame for driving big falls in financial stocks, financial services firms – including those targeted by short-sellers – are profiting from the investing strategy.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this