The head of one of world’s largest securities lenders, responsible for loaning out hundreds of billions of dollars worth of stock to hedge funds each year to facilitate their short-selling, has left to join one of the sector’s new breed of start-ups as investors increasingly look for alternative providers.
Peter Economou has left his position as head of securities finance at State Street and taken a number of his colleagues with him to a new start up venture, the custodian confirmed yesterday.