07 Oct 2002, Navroz Patel, Risk magazine
Dealers estimate that Goldman handles around one-quarter of Europe’s short-selling activity. Ehrlich's opinions contrast with those of several large traditional fund managers that claimed short selling by hedge funds was driving down stock markets and causing financial instability. Back in July, two Dutch pension fund managers, PGGM and ABP, said they would no longer lend stocks to hedge funds.
David Prosser, chief executive of UK financial services firm Legal & General, also criticised short selling, claiming it worked against the interests of long-term investors.
Ehrlich is also co-chief operating officer of Goldman Sachs’ global securities service business that encompasses securities lending alongside prime brokerage.
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