TD change in WFE Margin Status Interesting that TD changed their margin limit for WFE today, to 25%, down from 50%.
The logic behind such a move, is that the Bank feels the asset is less secure, so they are less willing to accept it as debt security.
In my view, WFE's share price is very well supported at these levels. Will be interesting to seeif the other Canadian Banks follow.
Last time I owned a stock that had its margin limit reduced, was during the financial crises, after L. Bros went under. At that time, I assumed it had more to do with Bank's needing to retrieve thier borrowed money, rather than an increased risk of loss in share captial (which had already occured).