It is telling how you have been shouted down on this Board, I have received two emails from Schwab in the last two days asking to borrow shares in two separate accounts, one of which holds MCP and one of which doesn't. I know that Schwab will not lend your shares without your permission UNLESS you have a margin balance with them (permission is given automatically in the margin agreement). Schwab did not identify the shares they wanted to lend or the price, but both accounts hold volatile shares.
The complainers on this board have no idea what they are talking about but if they SCREAM it load enough maybe someone will believe them...
Called Schwab. It is true that it is not the normal scenario in which shares are loaned, but if shares are highly sought after, they will approach customers with large positions in in-demand stocks. They do not advertise it and there is no section on the web site about it. But I spoke about it with a regular customer rep and Customer rep can connect you to department in charge of borrowing shares.
It is legal if the owner of the shares, in a regular investment account or contributary (IRA) account signs an agreement stating "I agree to lend these fully paid shares for this [X] percentage of their worth."
Obviously they prefer to use shares from margin account, where they don't have to pay interest and they don't have to pay lawyers to draw up documents, etc.