Fidelity Investments is bringing its stock-lending business in-house and cutting out the middleman, in this case Goldman Sachs (NYSE:GS), when dealing with short sellers, Bloomberg reports, citing a March 29 regulatory filing.
The move comes amid intense competition to attract investors by lowering fees.
Goldman received ~10% of revenues generated by Fidelity's lending, primarily to firms that borrow stocks to bet against them, according to the filings.
Fidelity plans to use some of the saving to increase the returns in the the funds that lend securities, especially index trackers that hold thousands of stocks, Bloomberg says.
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