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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (30150)	2/22/2008 2:18:22 PM
From: Grommit	Read Replies (3) \| Respond to of 78740

ACAS -- I just got a letter from schwab where they want to borrow my ACAS shares and pay me 2% annual interest rate on the market value of the shares. I lend the shares and get the 2%. They get the dividends but schwab pays be an equal amount in lieu of dividends. But since that is taxable at regular tax rates, schwb pays an additional goodwill amount to cover the tax. But the securities get moved to a new account which is a hassle. And I get a letter of credit since I lose SIPC protection. I never heard of such a thing. I see no downside. Any comments?