how is rehypothecation legal 
rehypothecation is legal because it is often agreed to by clients clients may have to agree to terms in order to use a service for example when they deposit shares into a specific brokerage account they may have agreed that the broker may do certain things to those shares second rehypothecation the same may be said about bank deposits in order to open a bank account at an institution the fine print may state that the firm is allowed to manage your funds as they see fit 