The prudent man rule:
http://en.wikipedia.org/wiki/Prudent_man_rule
Prudent Investment state law example
Notice no mention of security lending.
Note originally:
As with any fiduciary relationship, margin accounts and short selling of uncovered securities are also prohibited.
We know that in order to lend out securities in a brokerage account you needed a margin feature and yet today we have institutions lending out stock in volume... what the heck happened to fiduciary duty and prudent investment concepts?
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