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HedgeLender Institutional SIPC-Member-Managed Securities Loans Take Off

By hedgelender on November 14, 2009 United States of America

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HedgeLender LLC, the oldest securities-backed financing facilitator in the U.S., has seen a major increse interest in its institutional, stay-in-account programs in 2009.


HedgeLender Institutional SIPC-Member-Managed Securities Loans Take Off

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 14, 2009 -- With roots going back to 1999, HedgeLender LLC remains the oldest continuous facilitator of securities-backed financing in the U.S. Since 2007, the company has taken major steps to upgrade its due diligence and security while making many exciting additions to its product and service line with new institutional financing programs featuring personalized client services and licensed account advisors through a major U.S. brokerage. Led by founder Daniel W. Stafford, formerly of the U.S. Department of Commerce's International Trade Administration, and partner Fred R. Wahler, the company today offers a line of stay-in-account-and-title securities-collateralized loans with a huge range of securities eligibility (HedgeLender eligible securities list: http://www.hedgelender.com/premier.htm.)

Following issues in loan delivery with one Ohio-based funder, HedgeLender LLC adopted a policy of eliminating any funding party, Affiliate, or client who could not pass due diligence procedures and additional verification. "We found that the common-sense due diligence that we had thought was adequate, would not be sufficient in today's financial circumstances," said HedgeLender President Daniel W. Stafford. "Our experiences in 2007 and 2008 led us to a top-down, bottom-up review of all of our processes and procedures just as the real estate meltdown hit. The results have exceeded our expectations."

As the subprime market troubles began to take over the financial industry last year, HedgeLender LLC was already well on its way to carefully buttressing its systems and services. Affiliate candidates now had to produce detailed resumes along with picture IDs, for example, and were cleared through the CSI criminal information database. Later, the PACER government civil and criminal database was added, followed by the URU identity verification system for international clients and agents. Affiliate contracts included strict prohibitions against unauthorized statements or misleading claims. "We were very specific, lecturing them in orientation sessions and having them sign to very specific prohibitions, such as never touting these loan programs as tax shelters, which they are not", said Fred R. Wahler, Vice President. Affiliates violating any HedgeLender compliance policy are immediately terminated.

The biggest change was the re-orientation of the company's stock loan and securities-backed financing to focus exclusively on institutional loan programs. Through leveraged relationships with a major U.S. banking and brokerage, a series of loan product (including the company's signature HedgeLoan®), were introduced within the context of a fully-regulated, SIPC-member U.S. institution. Stafford noted that "Beginning in 2008, we pressed to implement a program we'd been developing for some time within the context of a fully-regulated and licensed institutional management structure. We accelerated this process so that by the beginning of 2009 we were poised to offer a loan program that would have the familiarity most clients are used to with their current brokerages and banks."

Stock loan brokers and lenders have had their fortunes battered by the overall economic climate and general distrust of the financial industry that occurred in early 2009. High-profile nscrupulous lenders, advisors, and front-page wrongdoing by large institutions tarred the entire industry, causing a large shrinkage in the American financial industry that has not been conducive to a rapid economic recovery.

HedgeLender, however, has been able to survive by staying focused on better products, improved verification and due diligence, and unwavering commitment to personalized service for every client who crosses our path. "The market today demands institutional security with multiple verification and licensed, fully regulated management of loan portfolios" said Stafford. "Nothing less will do today."

For more information on HedgeLender stock-secured loan programs and the Premier program, please visit www.hedgelender.com.

Contact:

Daniel W. Stafford
E-mail: dstafford@hedgelender.com
Fax: 1.215.754.4456


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About the author

  • Name: HedgeLender LLC

    Email: ***@hedgelender.com

    Website: http://www.hedgelender.com/whyhedgeloan.htm


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