If you bank with Bank of America chances are they’ve been using your hard earned money to short AMC stock. Financial institutions have been shorting AMC stock all year, resulting in billions of dollars in losses.
Bank of America also has a 75% probability of going bankrupt according to sources. The shorting of meme stocks could explain why the bank is currently facing liquidity issues.
Welcome to Franknez.com – so much information is coming to fruition. I’m piecing bits of information that have been revealed in the last few weeks and days.
Let’s get started!
Information from one of my articles has been circulating the entire community recently. In this article, I go over how AMC continues to be the most shorted stock in the market. This is going to be a very important piece of info.
Bank of America Is Shorting AMC Stock
Bank of America is on the list of the top 10 institutions shorting AMC stock. BofA is known for being an untrustworthy bank for the people so it comes as no surprise.
They’ve been cheating the system by demanding printed money from the feds to lend to short sellers. The insane part of this scheme is that everyone is a part of it.
I’ll touch topic on that below.
A lot of the puzzle pieces seem to be connecting now. Boston and Dallas Fed presidents Kaplan and Rosengren were fired due to investing in securities while playing a major role in creating monetary policy.
Repos have been at record high this year. The feds have been pumping so much money into the financial systems for banks and hedge funds to maintain margin requirements from.
Hedge funds have been overleveraging their positions due to betting against retail investors who aren’t giving up the fight for a fair market, and a short squeeze play in their favorite ‘meme stocks’.
Now, 34 of the largest banks are being required to hold $1 trillion in capital, enough to be able to loan mortgages and business loans during an economic downturn such as a recession.
Will banks margin call hedge funds to meet the new capital requirements as of October 1st? Or will they default?
Hedge Funds Just Got Smaller
We’re beginning to see financial institutions throw other institutions under the bus. Citadel began pointing fingers towards Robinhood during a rant on Twitter.
I think very soon we’re going to see banks do the same towards hedge funds. Will hedge funds be able to pay back banks? Someone has to pay back the overleveraged debt they owe.
What started from a Robinhood and Citadel scandal just climbed the hierarchy and is now involving both the banks and feds.
This could be the biggest financial scandal in history.
Is America Headed Towards Financial Collapse?
Janet Yellen just recently said, “there are issues relating to hedge funds and the possibility of leverage, they can trigger financial runs.” So, we know that any chance of financial ruin in the markets is tied to overleveraged hedge funds and financial institutions.
Hedge funds have been borrowing money from both the banks and the feds. The feds weren’t stopping overleveraged institutions from borrowing money, but rather contributing to their needs and gaining from them, as seen with Kaplan and Rosengren.
It seems leaders are washing their hands before these scandals continue to escalate.
A substantial portion of Citadel’s assets are held by Bank of America’s clearing house “BAML“. Powerful leaders are fleeing the crime scene. Who are the first to flee a sinking ship? Leave a comment below if you know the answer to this one.
Will Bank of America Go Bankrupt?
Bank of America has a ‘more than 75%’ probability score for bankruptcy, via MacroAxis. The fact is there is no path that can save overleveraged institutions or short sellers betting against retail investors right now. The future of the short seller is grim.
To make matter worse for the bank, retail investors are pulling their money out from the bank before things get a little more severe. In fact, one of my personal family members just moved 98% of their money from BofA into a brokerage account.
Overleveraged hedge funds and banks will be the cause of the next financial collapse.
Something massive is coming very soon and I know the community can feel it. I speculate paper-hand sellers will soon re-enter the markets as the first wave of short sellers begin to close out their positions.
This momentum will only further complicate the state of emergency these financial institutions are currently in.
What Happens If A Bank Goes Bankrupt?
If a bank goes bankrupt, the FDIC must collect and sell the assets of the bank and settle its debt.
For AMC and GME shareholders, this means that all the shares that were borrowed will finally get bought back. Heavily shorted stocks would skyrocket as overleveraged debt is finally closed out.
The results? MOASS (mother of all short squeezes).
The momentum from billions of shares being bought back could push ‘meme stocks’ to unprecedented numbers.
Whether Bank of America goes bankrupt will depend on whether they file for bankruptcy protection or not.
A short squeeze play is imminent and there’s no doubt financial institutions are preparing for it.
The Stock Market Is Rigged
“The stock market is a rigged game for the wealthy as corporate execs can hide behind trading plans as they buy or sell stock, sometimes based on nonpublic information.” via ZeroHedge.
We’re seeing this happen right before our very own eyes. Fed presidents Kaplan and Rosengren were using their power to mold regulation in theirs and their partners favor.
Bank of America has been a liquidity refuge for Citadel, allowing them to overleverage their positions in heavily shorted stock without repercussions.
We saw that Robinhood executives sold AMC and GME stock right before halting trading back in January of this year. The Citadel scandal has been the talks all over Reddit and Twitter. Citadel and Robinhood had communication about which ticker symbols would be halted.
The stock market is a device that has been created for the wealthy to leverage their wealth to build more wealth. The SEC has proven to have little to no power.
Now, that doesn’t mean retail investors don’t have a chance at the market. Corporate executives simply have a much stronger edge.
Our voice and DD have been very powerful tools in fighting corruption in the markets. We’ve been able to inform the public of what’s been occurring all while setting ourselves up for an immense short squeeze play.
What a journey.
The Greatest Transfer Of Wealth Is Commencing
I believe this scheme revolving shorting meme stocks is finally coming to a close. Empires are crumbling and new ones will rise.
But before new ones rise, retail investors would have made history by beating the financial system at its own game first.
It seems more information is being revealed with each day that passes. I don’t think retail investors have had an upper hand like this before. And unfortunately for short sellers, they’re about to get burned again. This time for good.