Until recently very little of the revenue from stock lending has found its way into the pockets of retail investors, says Joshua Galper, managing principal of Vodia Group, a New York City consulting firm that analyzes securities lending.
Mr. Cox, a former chairman of the House Republican Policy Committee and the Securities and Exchange Commission, is president of Bingham Consulting LLC.
Concerns about the dual role and influence of Merrill and other pension advisers are coming to the fore because of the Securities and Exchange Commission examination of the pension-consulting business in general.