[fractionalhare]

They can wag their finger, but they don't legally have recourse for finding out this information ahead of time if Hwang and his existing lenders don't volunteer it. That's just the current state of play with margin lending.

[lotsofpulp]

Then the onus is on CS to correctly price that risk, or not lend the funds.

[fractionalhare]

And that is why heads of risk lost their jobs this week!