"Merrill Lynch has done it again.
At least one other high-risk margin lender, backed by Merrill, has got the wobbles and is attracting some scrutiny from the regulators amid the fallout from the Opes Prime debacle.
This time, it is Sydney-based Lift Capital.
Like Opes, Lift lends money to clients to buy speculative stocks outside the ASX Top 300. It also encourages clients to borrow against their property to buy shares"
So another raft of stocks look like being dumped onto the market. How do we ascertain the + 5% holdings at risk earlier than we found out with Opes?
Full article here - http://business.theage.com.au/anothe...0410-252j.html
"Not as risky perhaps as a source said its exposure to Lift was $650 million on stocks loans of $800 million.
Although the ''approved securities list'' on the Lift website shows ASX Top 400 stocks - less risky (at least on the website) than the Opes list - "
And who is next after Lift Capital you ask?
"It is believed the regulators are now investigating any margin lender that uses this high-risk model.
Melbourne-based Chimaera Capital is another.
Chimaera lends on just about any stock in the All Ordinaries index and lends stock out for shorting as well."