For the Fully Paid Loaning / Share Lending programs from brokerages, are people seeing a disparity in rates given vs. rates reported (via Fintel, etc.)?
* Forget Robinhood, which shows nothing, and they give you “up to 15% of the weighted average rebate rate ($/share) that Robinhood earned by lending the stock on that day”, so Robinhood pockets 85% of the interest earned, sounds more like the Sheriff of Nottingham…
* Etrade seemed to be the opposite, offering much more of the pie (reverse of Robinhood) but it seems now they’re taking half the interest, i.e. whatever interest is reported on Fintel and other sites, the shares on loan are half that.
* Schwab seems to be the same as Etrade, again giving half the reported interested for shares on loan.
I wouldn’t expect 100% of the reported interest as they’re managing most of the work and risk; but it seems brokerages are keeping the details on interest paid out from share lending intentionally vague so they can do whatever they want (like decide tomorrow they‘ll give you table scraps for your shares instead of an actual portion).
This is better than share lending that happened behind the scenes in the past with no income to the actual share owners; but the greed here is ridiculous.
Anyone tracking brokerages and which ones are better for investors to participate in share lending? If they all suck, might be worth everyone just shutting off at once on a planned day.
Posted earlier as discussion in WallStreetBets but removed by mods. 🤷🏻♂️