Margin lending is different from securities lending. With margin lending you retain beneficial ownership, and are lent money against a margin of equity maintained in those shares.
With securities lending, you transfer beneficial ownership to the lender and they use that as security against their wholesale loans. Securities lenders tend to offer more flexibility in LVRs and let you short stocks very easily. Personally I had a great experience with tricom.. until the trouble.
I will have to get used now to a whole new world of "diversified" trading at ANZ/etrade.. but its way better than potentially losing it all because your broker blows up :(
