Formerly NE North Dakota, now NW MN | I know of at least one prominent lending institution that was borrowing at least 2k if not 2.5k against a share of stock. This conversation was 11 months ago so I don't remember the number for certain. I also don't know how much they had out, but I left the conversation with the feeling that it was "quite a bit".
The questions that arise when shares are trading $250 a share below what's borrows against them are too numerous for me to list. Chief among them is- who's responsible to get the beets in the ground if a lending institution forecloses on shares.
If we do see shares trading at 1k... Well.... It'll be an interesting situation for many. |
Nick-Update on Sugar/Stock
