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Non-Tech : TD Waterhouse Group (TWE) -- Ignore unavailable to you. Want to Upgrade?

To: Proton who wrote (1188)	4/16/2000 12:30:00 PM
From: Achilles	Read Replies (2) \| Respond to of 1413

According to TWE's annual report, "net interest revenue" (i.e., the difference between what they pay for cash in your account and what they charge for margin) came to 186m of 960m total revenues, which is just under 20%. Any large shrinkage of margins will obviously affect this income. Margin calls, however, are not necessarily a bad thing for the broker. If a customer sells stock to cover his margin, TWE makes a commission. If a customer writes a check, then TWE's total assets will be increased. TWE only loses if the punter learns his lesson and avoids margins.