foster stockbroking meeting with fge, page-26

Saintly I don't agree with your comment. Instos don't buy shares simply to lend them out. The risk of their long positions falling in value would greatly outweigh the marginal benefit they would receive from lending out the stock to other investors. These holding would be held by the institutions on behalf of their clients but they would have the ability to on lend them to shorters. However, they also have the ability to recall the lending when required. They personally wouldn't buy the holdings to lend out the stock.