I too fall into the dinosaur category when products like this abound-but the current fiasco has very serious ramifications for my beloved resources sector.
Frankly it will basically stop capital formation at the junior end. Well known west coast brokerages currently have snow flakes chance of raising funds for the junior resources sector. Even tougher now on the east coast.
As to margin lending/securities lending reckon the practice should be banned along with CFDs, warrants and any exotic derivative products. At the very least prohibit banks from being involved! (I have never met an average bank johnny who had the vaguest idea how the equity markets operate.)
The list published earlier tonight will provide the basis for fear of the unknown-a company is named, how many do ANZ hold, better avoid. Almost one for a class action by existing shareholders in those named companies to take action against ANZ/Merrills?LOL
What a bloody mess. I am not directly involved but have a number of young friends who are.
Maybe another counter action by those directly effected? Run the argument that Opes was merely a retail agent of ANZ/Merrills wholesale scrip lending business???
Well the legal fraternity will get their bonuses this year. Not many others will!
