Financial Times, September 3, 2015 - "Market woes prompt regulator to warn on securities-based loans"
Ben McLannahan and Joe Rennison's "Market woes prompt regulator to warn on securities-based loans" quotes SLCG's Paul Meyer on the conflicts of interest involved in brokerage firms' extension of securities-based loans. Paul is quoted as saying "While securities-based lending is a low risk and very profitable business for the broker-dealer, the same cannot be said for the borrower. Broker-dealer lending creates conflicts of interest, saddling the customer with risks and potential long-term consequences he or she may not fully understand until the next bear market arrives." Paul's paper on securities-based lending is available here.