The end of 2008 and the beginning of 2009 were arduous times for all participants in the securities lending chain. Governments banned the practice of short selling, and for pension funds, it has been exceedingly difficult as public scorn for securities lending hit fever pitch. With lending programs under fire, some beneficial owners struck back themselves via lawsuits, claiming they were not aware of the risks, and many more suspended the practice. Will they stay away for good?

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