Comments about UBS being a major source of stock lending for...

Comments about UBS being a major source of stock lending for shorting purposes is quite likely very accurate.

UBS would receive a fee, usually about 1%, for lending the stock. The borrowers also have to reimburse UBS for any dividends that are declared. Consequently UBS, even though they lend the stock, still technically benefit or otherwise by their original holding & their profit & loss is hedged by the lending fee.

A lot of stock borrowing is from overseas registered owners & as they cannot benefit from franking credits the borrower has only to reimburse the actual dividend & not the franking credits.