stock lending issues

--The stock-lending market was once a backwater of Wall Street, but has grown into a $10 billion industry, fueled by the increased use of short-selling. For years, this market had been under the radar, which authorities believe created holes in compliance and an opportunity for fraud. --Problems have occurred when stock borrowers pay finders to help locate shares when such services aren't needed, people familiar with the situation said. That can in some cases result in finders' siphoning off investor fees that should go to the brokerage house. Ultimately, the practice could make borrowing more expensive.