(k)Plans Published in June 2002
Exclusives: Right For You?
IBM will not confirm it, but sources say that Big
Blue's defined benefit plan has begun direct-lending
relationships with a handful of broker/dealers, a practice
known as using "exclusives." This is not new-Street firms
have long desired to break the hammerlock that custodian
banks traditionally have had in securities lending, and have
been successful in persuading some insurance companies and
large pension pools to bypass their custodians and lend
directly to them. However, IBM's decision ups the ante
somewhat, securities lending insiders say.
An Ounce of Prevention