The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:WSJ Looks For Sunlight From the iShares Sec Lending Suit Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, February 19, 2013

WSJ Looks For Sunlight From the iShares Sec Lending Suit

News summary by MFWire's editors

BlackRock [profile] is fighting a lawsuit over iShares' [profile] securities lending practices, and the Wall Street Journal wonders if the case will bring much-needed sunlight to the practice.

Last month two pension plans filed suit against the ETF titan, claiming that iShares systematically "looted" securities lending revenues by not passing along enough of the profits to the ETFs themselves (and thus the investors in the the ETFs). In today's issue of the WSJ, Ian Salisbury compares the case to the 401(k) fee disclosure lawsuits of the past few years.

"You want sunlight," Illinois Institute of Technology law professor William Birdthistle told the paper. "Lawsuits like this can provide an investor education."

Dave Nadig, director of research for IndexUniverse, weighed in to support BlackRock's contention that iShares' securities lending practices help its ETFs earn "above average returns." University of Texas professor John Adams, on the other hand, told the WSJ that, in his research of 226 mutual funds, he found that securities lending through affiliates lowered investors' returns by 70 percent between 2003 and 2009.

Earlier this month, Nadig penned an article wondering if the math behind the lawsuit is wrong. 

Edited by: Neil Anderson, Managing Editor

Stay ahead of the news ... Sign up for our email alerts now

 Do You Recommend This Story?

Return to Top
 News Archives
2020: Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Add to My Yahoo!
follow us in feedly

©All rights reserved to InvestmentWires, Inc. 1997-2020
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use