Fidelity Drops Goldman by Bringing Securities Lending In-House
- Mutual fund giant’s move comes amid fee war with rivals
- Hedge funds borrow securities when they wager against them
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Fidelity Investments is cutting out its middleman -- Goldman Sachs Group Inc. -- when dealing with Wall Street short sellers.
The money manager is bringing its stock-lending business in-house, according to a March 29 regulatory filing, instead of paying Goldman Sachs to run it. According to filings, the bank received about 10% of the revenues generated by Fidelity’s lending, primarily to firms that borrow stocks to bet against them.