Reply #46: This isn't a bailout issue-- it's a question of the securities lending process

[antigop]

I've posted about securities lending on previous threads.

Stable value funds are supposed to be conservative funds. As the previous article stated, two out of three 401(k) funds have stable value funds as their "most conservative" option.

Securities lending has been going on for years. The question is, "What are they getting as collateral when they loan out the securities in the fund?"

This isn't about accounting of bailout funds that may have been received.

It's a question about the entire process of securities lending.

<edit to add> The article states, "These included $450 million to protect investors from losses in stable-value funds:" I'm assuming this means State Street (previous paragraphs also talk about Bank of New York and Northern Trust.)

So out of the $450 million they had to spend to protect losses in stable-value funds -- how much of the $450 million loss was due to collateral losses from securities lending?