Category: Economy

Tiger Global Hedge Fund Sinks a Massive 34% This Year

Tiger Global Hedge Fund Sings 34%
From left, Chase Coleman III, Scott Shleifer, and John Curtius. Photos by Bloomberg. Art by Mike Sullivan, Edited by Frank Nez

Tiger Global has an AUM of $95 billion, that’s $57 billion more than Citadel’s AUM of approximately $38 billion.

The monster hedge fund is managed by Chase Coleman, 46, who was up until now considered to be a hedge fund legend.

Tiger Global Management had a rough 2021 according to sources and losses are piling up in 2022.

Hedge funds seem to be in a lot of distress recently.

Let’s break it down together.

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Hedge funds face turbulence in 2022

Tiger Global

This year we’ve seen many hedge funds face massive adversity.

Hedge funds have been dealing with significant losses this year, probes from the DOJ, and scrutiny from retail investors.

Hedge fund managers once deemed leaders in their industry now have their reputation on the line.

Gabe Plotkin was named a great trader by Citadel’s Ken Griffin although the hedge fund had to bail Melvin Capital out due to the ‘meme stock’ frenzy.

Citadel pulled $2 billion from Melvin Capital in recent months.

Chase Coleman is in a sticky situation too.

Tiger Global Management is down 34% this year through March.

The speed of the reversal has shocked just about everyone, considering that Coleman is celebrated as one of his generation’s brightest stars, a standout among the elite money managers mentored by the famed Julian Robertson, Bloomberg.

Tiger Global Management treads rocky waters

The bad run has been fueled by massive bets on stocks that have been hammered, such as fast-growing tech companies in the U.S and China.

Tiger Global hedge fund lost 7% last year, its first annual drop since 2016 and its third total, according to Bloomberg.

Tiger Global told clients in a letter that it’s opening up both its hedge and long funds to a limited amount of capital from existing investors to bolster positions in stocks that underperformed

However, we see the results in the first quarter of 2022 has not been what the hedge fund anticipated.

Built by Coleman and his partner Scott Shleifer, Tiger Global has long been seen as a throwback to the industry’s glory years, when double-digit returns were the norm and ‘hotshot managers’ unerringly backed winning companies and shorted the losers.

Across the firm’s $35 billion in funds focused on public companies, this year’s losses have triggered a more than $10 billion hit to investors that include foundations, endowments and pension funds, as well as Tiger Global insiders.

Coleman’s personal wealth has dropped by $1.3 billion, according to calculations by the Bloomberg Billionaires Index. 

Coleman’s hedge fund headed towards worst year

Tiger Global hedge fund may be on track for one of its worst years yet.

Tiger Global Hedge Fund

The blue in this chart indicates the hedge fund’s losses in 2008, 2016, 2021, and 2022.

The firm’s first serious bump was during the 2008 financial crisis, when it lost 26%, followed by a 1% gain the next year.

While markets were already jittery this year due to high inflation and expectations of rate hikes, Russia’s war against Ukraine triggered a flight from risk. 

The Russia-Ukraine conflict has affected every corner of the financial sector.

Earlier we saw Citadel and other hedge funds faced default on Russian bonds from tech company Yandex.

But Tiger Global Management isn’t the only hedge fund struggling.

Investors are pulling out $250 million from Coatue Management and the hedge fund cannot meet its investors demands.

We’re beginning to see this domino effect of losses begin to catch up to even the biggest hedge funds in the world.

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I’d love to hear your thoughts on the matter.

Leave a comment in the comment section down below.

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Citadel Faces Potential Default on Russian Tech Company

Citadel Default on Russian bonds
Market News: Citadel faces potential default on Russian bonds

Citadel is facing potential default on convertible bonds from Russia’s Yandex NV.

Yandex NV is an internet and technology company that provides an internet search engine in Russia and other international markets.

Tigran Khudaverdyan has stepped down from his roles as Executive Director and Deputy CEO at Yandex.

Citadel could default on convertible bonds worth billions.

Here’s how Russia is affecting the hedge fund.

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(Bloomberg) Tech company suspension could lead to Citadel default in Russian bonds

Yandex Russian Bonds

The Russian tech company’s U.S. shares have been suspended for more than five days, enabling bondholders to ask for repayment in full. 

Citadel just happens to be one of those bondholders who wants their money back.

The firm said it does not have the money to redeem the $1.25 billion bonds, which are meant to be exchangeable for common stock.

Yandex is one of few Russian companies with convertible bonds issued from foreign financial institutions.

And because restrictions complicate the transfer of money out of Russia, access to capital markets to raise funds any time soon seems highly unlikely.

This significantly increases the odds of Citadel having to default on their Russian bonds.

If Citadel defaults on these bonds, the hedge fund would have accrued additional losses its first quarter of 2022.

Representatives from Citadel declined to comment on the matter, according to Bloomberg.

JP Morgan Chase & Co. turns down advisory role

JP Morgan turns down advisory role
Citadel and bondholders seek advisory – JP Morgan declines

Bondholders have the right to ask to be repaid in full if the company’s shares stop trading for over five days.

However, Yandex only has $615 million in cash with only 60% of that money located outside of Russia.

This means Yandex only has approximately $369 million in liquidity.

That’s a massive difference from the $1.25 billion they owe to Citadel and other institutions affected.

Because sanctions are preventing money from leaving Russia, it’s impossible Citadel will obtain cash from the country.

Bondholders are struggling to find advisors to navigate the process.

JPMorgan Chase & Co. turned down an advisory role on the situation after participating in initial discussions.

The bank simply does not want to get involved.

Will Citadel default on these bonds?

The chances are very likely.

Margin call tension rises

Credit Suisse has been margin calling clients exposed to Russia.

In the coal industry, Peabody received a $534 million margin call.

We’ve recently seen Citadel pull back $2 billion from Gabe Plotkin’s Melvin Capital as they too have been experiencing losses.

Even as Citadel faces default on Russian bonds, the hedge fund has sent signals of distress in the past few months.

Events include from receiving a $1.2 billion lifeline from Paradigm and Sequoia to restricting customers from cashing out.

The Russia-Ukraine conflict is creating losses even for short sellers during a time they would usually profit.

It seems it’s only a matter of time before hedge funds start receiving margin calls too.

But will big banks be able to bail everyone out?

What do you think?

Leave a comment below.

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Read: Ukraine: These famous brands have pulled out from Russia


Breaking: The Moscow Exchange Bans Short Selling

Moscow bans short selling

(Bloomberg) Moscow bans short selling, indicating officials are preparing to reopen the market.

Russia is banning short selling in some of the country’s biggest companies.

The power to ban a strategy used by hedge funds to inflict damage on a company’s stock raises curiosity.

Is this Russia’s way of raising capital?

And should more countries like the U.S. also ban short selling?

Let’s break it down together.

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Welcome to Franknez.com – if you haven’t already joined the newsletter be sure to do that below. I’m publishing daily market news to keep you informed.

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Moscow bans short selling in some of Russia’s biggest companies

Moscow exchange bans short selling
Moscow exchange bans short selling

Investors won’t be allowed to bet on declines in about 30 Russian companies, according to Bloomberg sources.

Most of which are petroleum and coal companies.

The decision went into effect on Tuesday.

Russia’s stock market has been closed since February28th, the longest shutdown in Russia’s modern history.

There has not been any confirmation as to when stocks will begin to trade in the Moscow Exchange.

The head of portfolio strategy at Toronto Dominion Bank in London says the Russians might want to remove residual risk on falling prices.

Other exchanges have used short-selling bans to limit volatility during a crisis.

Back in March 2020, at the peak of the Covid pandemic-fueled selloff, Italy, France and Belgium also banned shorting selling.

In other places such as mainland China, investors have limited ability to short stocks.

In the United States investors have what seems like an unlimited ability to short company stock, which in some cases results in bankruptcy.

Let’s use Hong Kong as another example.

Only stocks specified by the lit exchange in Hong Kong may be eligible for shorting.

Investors say its near certainty that stocks will tumble when Russia’s stock market opens.

Should the U.S. ban or limit short selling?

The U.S. on the other hand has a real issue with abusive short selling practices.

A collective of institutions such as banks and hedge funds collude to drive the share price of a company’s stock down for profit.

Financial institutions will even go as far as to bankrupting a company to avoid paying taxes on the bets.

The Justice Department is currently investigating banks and hedge funds relating to market manipulation and other injustices in the market.

If Moscow can ban short selling, and other countries can too, do you feel the U.S. should as well?

Due to the capitalistic nature, banning short selling in the U.S could prove to be difficult, which raises the question; should it be limited?

I’d love to hear your thoughts below.

Is this ban temporary?

Moscow exchange short selling
Moscow exchange bans short selling

It seems like Moscow’s short selling ban may only be a temporary strategy for the country to begin stabilizing again after its economic turmoil.

Russia was removed from the SWIFT system in February when it invaded Ukraine.

This escalated tension worldwide as Russia was no longer able to access money outside the country.

The biggest companies in the world also pulled out from Russia which further crippled its economy.

What the ban on short selling in Moscow shows us is that governments have the power to remove the same predatorial short selling that we see happening in recovering companies such as AMC and GameStop.

While short selling has its use in the market to balance volatility, limiting the use of short selling on a group of companies wouldn’t be such a bad idea.

I’d love to hear what you think.

Leave your thoughts in the comment section below.

Stick around for more market news

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Chinese Tycoon Gets Bailed Out From $8 Billion Margin Call

Chinese Tycoon gets bailed out from $8 billion margin call
JP Morgan bails out Chinese tycoon Xiang Guangda after receiving an $8 billion margin call for sorting Nickel – Long Metal Exchange halts continue

Chinese tycoon Xiang Guangda has been bailed out by JP Morgan after receiving a whopping $8 billion margin call.

The margin call came about as he was shorting Nickel.

The commodity short squeezed leaving the Chinese tycoon with an $8 billion margin call.

Xiang told banks he wanted to keep shorting Nickel and shrugged off suggestions to reduce his short positions, Bloomberg.

Should this even be allowed?

Let’s discuss it.

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Chinese tycoon gets away with $8 billion margin call

London Metal Exchange
London Metal Exchange

The tycoon whose big short bet on nickel helped trigger one of the most dramatic price spikes in history has told his banks and brokers that he doesn’t intend to reduce his position, according to Bloomberg.

The London Metal Exchange halted trading in nickel after prices spiked as much as 250% in two days.

 Xiang has told the roughly 10 banks that he still believes prices will fall and that he would like to keep his short position.

The LME acknowledged that short sellers weren’t going to voluntarily reduce their short positions.

It said there were “considerable differences in view on the appropriate price.”

Apparently big net worth short sellers make the rules.

They Chinese Tycoon secured a deal with JP Morgan and China Construction Bank that would allow it to avoid defaulting on its $8 billion margin call.

LME halts Nickel trades

The LME cancelled $4 billion in transactions as Nickel prices began to surge.

The exchange said: “Nickel will be deemed a disrupted session and all agreed trades during this session will be null and void.”

In other words, they took away the ‘buy’ button and are allowing short sellers to either close their positions or profit on the way down.

Dave Lauer says the exchange is ruining their credibility by protecting very wealthy and powerful people/firms.

“You can’t run a market like this, busting trades at someone’s whim.”

The halts are similar to those that occurred last year during the ‘meme stock’ frenzy when Robinhood froze the purchasing of GameStop, AMC, and other heavily shorted stock.

At some point, the people will cause an uproar.

What are your thoughts on the matter?

Big banks are beginning to bail out wealthy people and firms.

What can be done about it and what should be done about it?

The Chinese tycoon is only one example, but what will happen when heavily shorted stock begin to squeeze again?

Leave your thoughts in the comment section below and share this article to raise awareness to the injustices in the markets.

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Data Shows Liquidity in The Markets Is Deteriorating

Liquidity in markets
Goldman Sachs Investment Research

New data shows there is less liquidity in the markets due to high volatility, especially in the bonds market.

Earlier we saw Citadel could default on Russian bonds due to both sanctions and not enough liquidity in the markets to meet bondholder demands.

The market for Treasury securities is the most liquid in the world, however, liquidity in the markets has rapidly deteriorated to 2020 levels.

Will this cause short sellers to throw in the towel?

Let’s discuss it.

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Welcome to Franknez.com – today I’m going over a piece of information that ties up liquidity in the markets with hedge funds such as Citadel. Could this start the liquidation process?

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Deteriorating Liquidity in the markets ignites sell-offs

Liquidity chart
Liquidity in the markets

According to the chart above, the current treasury market is under serious stress.

This means the likelihood of Citadel defaulting on its Russian bonds is relatively high.

While it may not bring the entire hedge fund down to its knees, it will certainly create significant losses.

Without liquidity, Citadel will either need to take private funding again or begin to liquidate certain assets.

Could this be the catalyst to force a short squeeze in AMC Entertainment?

It certainly can be if the hedge fund decides to close their position in the movie theatre chain company.

After all, AMC Entertainment has now proven to be a growing company.

The theater chain has progressed every quarter since 2020 and now has a positive EBITDA.

Shorting AMC no longer makes any fundamental sense if short sellers are still betting on the company to file bankruptcy.

And with the company now invested in silver and gold, it could be a great company for Citadel to close their positions in before prices begin to surge again.

BofA says there’s been a ‘record outflow’ from hedge fund clients

bank of America

Bank of America said there has been a record outflow in the past weeks from stocks from its hedge fund clients.

In other words, hedge funds have been selling the entire market (shocker).

According to BofA, retail investors are actually balancing the markets due to above average buying pressure.

Citadel happens to be one of the bank’s clients; the bank manages the hedge fund’s assets through its clearing house ‘BAML‘.

If liquidity in the markets is running dry, we could see a surge in short covering to meet margin requirements and customer demands.

“Retail clients have been more aggressive buyers of this dip than other 10% corrections post-crisis, potentially on fear of missing out on what has generally been a successful strategy post-crisis,” Bank of America said.

According to the industry, most market participants don’t like the idea of “dumb money” buying while “smart money” is selling.

Could this idea of hedge funds selling trigger clients to take their money out?

What do you think?

Leave your thoughts below.

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Peabody Receives a $534 Million Margin Call: Goldman Steps In

Peabody Margin Call
Peabody Margin Call – Global margin calls will happen in every corner of the financial sector

Leading global pure-play and Fortune 500 company Peabody received a $534 million margin call.

The Australian benchmark coal price is up more than 400% in the past 12 months, hitting $425.

Peabody was not prepared and got slammed with a $534 million margin call.

The sum is more than half the cash the company had at the end of December 2021.

Margin calls are beginning to happen left and right and we’re going to discuss it.

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Welcome to Franknez.com – if you haven’t already joined the newsletter be sure to do that below. I’m publishing daily market news to keep you informed.

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Margin calls in the coming weeks

The Russian-Ukraine conflict is affecting global markets sparking margin calls in every corner of the finance sector.

Russia’s war in Ukraine has further fueled a rally in coal driven by a squeeze on global energy supplies.

Chinese tycoon Xiang Guangda is currently facing an $8 billion margin call after Nickel prices skyrocketed to $100,000 per ton.

Nickel surges to $100,000 per ton

Xiang Guangda tells banks he has no intention in reducing his positions.

The short seller is requiring a coordinated bank bailout including the participation of JP Morgan.

The London Metal Exchange halted trading in nickel on Tuesday morning after prices spiked as much as 250% in two days, driven by brokers rushing to close out short positions after holders of bearish bets struggled to make margin calls.

Credit Suisse News: Margin call tension rises

Credit Suisse margin call

The Swiss bank Credit Suisse is also imposing margin calls on investors exposed to Russia.

The invasion of Ukraine has left wealthy individuals invested in Russian assets with frozen accounts and demands for more collateral.

Tension really began to pick up when Russia was removed from SWIFT.

Banks in the United States are losing cash quick.

Citigroup disclosed in its annual report that it has nearly $10 billion in exposures to Russian counterparties, including loans, reverse repo agreements and cash deposits. 

Morgan Stanley’s next gen emerging markets fund (MFMIX) has also been exposed to Russia with nearly $16.6 million frozen due to Russian sanctions.

Schwab’s fundamental emerging markets large company index ETF (FNDE) has also been affected with 12.7% being exposed to the Russian stock market.

Peabody receives a 10% loan from Goldman

Peabody receives a 10% loan from Goldman Sachs
Goldman Sachs steps in with 10% loan – Peabody Margin Call

Peabody shares plunged 17% after announcing the margin call, taking a chunk out of the gains they had made in recent months as the coal market boomed.

Margin calls could increase if the coal market moves higher.

Senior VP for coal markets at Rystad Energy Steve Hulton says prices could reach $500 per ton.

Peabody arranged a $150 million credit line with Goldman Sachs although the bank announced in 2019 that it would phase out financing for coal.

Peabody’s margin call is only a glimpse of what’s coming to various institutions in the markets worldwide.

And in the states, retail investors are waiting for hedge funds’ number to be called.

Will banks be able to inject liquidity into hedge funds?

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As banks and hedge funds’ assets continue to lose their value, will banks be able to inject liquidity into hedge funds when they need it?

Leave a comment below with your thoughts.

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Russia Exposure Leaves BlackRock with $17bn in Losses

BlackRock Losses in Russia $17bn
BlackRock Losses in Russia amount to $17bn

BlackRock, the largest asset manager in the world has taken a $17 billion loss due to its exposure with Russia.

The Russia-Ukraine conflict is affecting global markets and BlackRock is no exception.

Clients held more than $18.2bn in Russian assets at the end of January.

Following worldwide sanctions imposed after Russia invaded Ukraine have made the vast securities unsaleable.

How is BlackRock managing?

Let’s discuss it.

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Welcome to Franknez.com – if you haven’t already joined the newsletter be sure to do that below. I’m publishing daily market news to keep you informed.

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BlackRock suspends purchase of Russian assets

BlackRock losses in Russia
BlackRock losses in Russia

While BlackRock never opened an office in Russia, it invested in Russian stocks for its clients that wanted exposure to the market.

The world’s largest asset manager suspended the purchase of Russian assets on February 28th.

BlackRock disclosed losses in Russia had only fallen to less than 0.01 percent of their total AUM.

A spokesperson said the total value was about $1 billion on February 28th, when the markets were effectively frozen.

However, BlackRock’s losses in Russia depicts just how large the asset manager is.

They hold roughly $10 trillion in assets globally.

A $17 billion loss could wreak havoc for majority of asset managers but for BlackRock it’s only a scratch on the surface.

Related: Ukraine: These famous brands have pulled out from Russia

What assets did BlackRock lose in Russia?

BlackRock Russia Stock Market

According to sources, BlackRock declined to give a breakdown of its Russian securities or details about which funds had losses.

However, the asset manager did mark down the value of its largest Russian exchange traded fund.

ERUS has gone from about $600 million at the end of last year to a total value of less than $1 million.

BlackRock has suspended trading and waived the management fees on all of its Russian ETFs as well as an emerging Europe fund that was heavily exposed to Russia.

BlackRock chief executive and chairman Larry Fink has praised sanctions and condemned Russia’s invasion.

“Capital is being pulled by investors and companies that have long done business in Russia,” he wrote in a LinkedIn post.

“We stand with the Ukrainian people and condemn the brutal aggression of the Russian government,” Fink added.

Other financial institutions who have been exposed to Russia include Citigroup ($10 billion in losses) and Morgan Stanley ($16.6 million in losses)

Related: Ukraine: These famous brands have pulled out from Russia

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Organized Crime in Wall Street: Big Money Buys Out Integrity

Organized Crime in Wall Street: Big Money Buys Out Integrity
#Occupywallstreet – Organized crime in Wall Street

It’s no secret Wall Street is known for its predatorial strategies in the finance world.

Retail investors known as the ‘little guys’ have been screaming at our government to take action for decades now.

Words do not fall on deaf ears.

They know all too well what’s going on within our financial system.

See, they’re lobbied to play a role in it.

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Welcome to Franknez.com – for decades activists have peacefully raised awareness of the corruption in Wall Street. But will this new generation let themselves be silenced without any change?

Let’s dive right into it.

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You’re about to play a major role in changing the financial world.

Gaslight: They said naked short selling did not exist

Naked Short Selling
Naked short selling is banned in various parts of the world except America

Wall Street has created fake shares in the market to drive the price of a stock down, a term known as naked short selling, for decades now.

The term naked short selling came about in the early 2000s when investors began to notice anomalies within trading activity of specific stocks.

As technology improved, Wall Street found loopholes from which they could exploit other people’s money.

And we’re not just talking about investors here.

They exploited the average people’s money who had pensions.

School teachers and other honest working-class people lost everything.

Companies like EagleTech, Overstock, and Viragen were some of the early targets for naked short selling in the early 2000s.

Shorts drove EagleTech and Viragen’s stock price so low the companies were delisted.

Wall Street profited from delisting a revolutionary technology company that Google now uses tech from.

Viragen was researching cancer.

Naked shorting was ‘banned’ but ‘meme stocks’ uncovered them

Meme stocks wallstreetbets
The retail investor community scales in growth via Reddit’s WallStreetBets

AMC, GameStop, Reddit’s r/wallstreetbets, the ‘ape army’, you’ve heard it all.

What happened decades ago is being uncovered again with GameStop and AMC stock.

Only in this decade the ‘little guys’ aren’t so little anymore.

Social media has allowed the community of retail investors and activists to have a much bigger voice.

Platforms such as YouTube have also given retail investors a medium through which they can raise awareness.

I took it upon myself to use my website to educate the masses.

While the ‘meme stock’ frenzy took over Wall Street, the industry denied the existence of naked short selling.

That is until retail’s message successfully made its way into mainstream media confirming the harm of it on national television.

In the meantime, companies owned by NewsCorp. continue to use the influence of media to drive stocks down.

Short and distort campaigns as explained by Elon Musk allow hedge funds to influence the media by pumping out negative articles on stocks.

Short sellers then take advantage of the drops and profit on the way down.

AMC and GameStop along with other heavily shorted stocks have been victims of this crime.

Hedge funds are trying to cheat themselves out of a potentially and massively large short squeeze.

The Wall Street Conspiracy (2012) Documentary

This documentary on Wall Street is a great introduction to the fight against Wall Street in the early days.

The Wall Street Conspiracy 2012
Link to full video here

The film captivates perfectly the crime on Wall Street and how our government has failed to protect the American people from it.

What’s significant about The Wall Street Conspiracy documentary is that it shows you the root of when government and the media began to get lobbied.

When activists created momentum, the media rescheduled discussing the problems on live television.

When the government was asked to step in, they did so only after the damage had already been done.

Today, financial institutions lobby congress who write the laws.

They’re writing the rules to the very own game their playing!

Watch Gary Gensler’s reaction to Jon Stewart’s statement in this short clip below.

Financial institutions lobby congress – Can we fix the stock market?

More on Gary Gensler and the SEC below.

Mainstream media gets their cut from Wall Street in “short and distort”

Wall Street Journal and affiliates are indirectly owned and influenced by Hedge Funds
Wall Street Journal and affiliates are indirectly owned and influenced by Hedge Funds

This ring of short sellers branches out to the media as well.

Remember, it’s an organized crime and is structured to work.

News Corp. owns Wall Street Journal, Market Watch and Barons just to name a few media platforms.

All of which have engaged in short and distort strategies to drive the price down of GameStop and AMC stock.

The conflict of interest is alarming considering Ken Griffin’s Citadel owns millions of shares of News Corp.

Citadel is on the list of top 10 financial institutions shorting AMC Entertainment Holdings stock.

The hedge fund lost billions of dollars last year betting against the theatre chain when retail investors bought the stock en masse.

The hedge fund/market maker has yet to close their positions.

Tesla and SpaceX CEO Elon Musk has expressed his animosity towards both short sellers and the SEC themselves for not taking enough action.

Elon has been one of the biggest influencers speaking out on these issues.

He discusses “short and distort” in this exclusive interview with CNBC.

What progress has today’s retail community achieved?

AMC Entertainment
AMC – Against Market Corruption, as seen on Twitter

Today’s retail community has:

  • Brought naked short selling to the mainstream media
  • Uncovered high dark pool trading volume
  • Saved AMC Theatres and GameStop from collapsing
  • Sparked a trending curiosity in stock investing
  • Made a statement to Wall Street, RETAIL ISN’T LEAVING

Retail investors have spread the message across message boards online and across all of social media.

Flying banner signs have been made and flown around the country raising awareness of the ‘ape movement’.

Billboard signs have been bought out to further amplify the message.

Various documentaries are coming out on this developing worldwide event.

The ‘ape’ community is made up of both millennials and boomers of all backgrounds.

Wes Christian has joined the fight again educating retail investors on his expertise in the markets.

He was a strong advocate in the early 2000s and has demonstrated his support for this movement.

Let’s dive into what regulators are proposing right now.

What are regulators doing about the crime in Wall Street?

Wall Street

Regulators have been ‘monitoring’ naked short selling activity for over a year now.

The FBI raided hedge fund Muddy Waters in December of 2021 for flooding the market with fake orders to drive the price of stocks down.

This is a term known as ‘spoofing‘ the market.

Banks such as Morgan Stanley and Goldman Sachs received subpoenas earlier this year.

Several hedge funds are also being investigated by the Justice Department.

Citron and Citadel are two of the biggest hedge funds under scrutiny by the DOJ.

Regulators are investigating colluding between hedge funds and banks.

Illegal short selling activities are one of many fraud investigations.

Gary Gensler says 90%-95% of retail market orders are not processed through the lit exchange

Gary Gensler SEC Chairman and Commissioner

SEC chairman Gary Gensler said in a Bloomberg exclusive earlier this year that up to 95% of retail market orders are processed in dark pools.

This means for every dollar retail puts in the market only 5%-10% of that dollar is accounted for your bet.

The 90%-95% of your dollar is used against you by short sellers.

Wall Street has been picking the pockets of millions of investors for decades now and the SEC knew about it.

When the ‘ape’ community brought the high dark pool trading volume to light regulators simply couldn’t deny it.

The SEC has the power to ban dark pool trading, so why don’t they?

The only explanation that comes to mind is lobbying.

Jon Stewart referred to Gary Gensler as a sheriff that’s been outgunned.

To which Gensler responds that the SEC is not properly funded.

So, if the government isn’t properly funding the SEC, does that leave room for financial institutions to step in and ‘fund’ them instead?

You tend to get a sense of when someone is truly dedicated to their mission and Gensler is not.

The SEC Commissioner simply wants to keep his job.

You can follow me on Twitter here.

SEC highlights market transparency proposals

SEC market transparency

The SEC released a market transparency report that highlights proposals that could protect retail investors from market manipulation.

In short, the SEC would be micro-managing short selling activities.

This type of monitoring is believed to refrain hedge funds from naked short selling.

If the proposals are enforced, it will be a massive victory for the retail community.

However, retail investors are skeptical of the SEC enforcing anything at all.

Actions speak louder than words and retail investors have not seen any changes in the markets for over a year since the ‘meme stock’ frenzy.

Market makers and brokers colluded last year to remove the buy button when AMC and GameStop began to soar in January.

The manipulation sparked a movement.

And in my opinion, will start a revolution if suppression on these heavily shorted stocks isn’t lifted.

90% of retail investors now own AMC Entertainment stock according to CEO Adam Aron.

So how is the price trading so low?

Naked short selling is the issue.

The question is, will regulators take action now or when it’s too late?

Who’s responsible and how did this get out of hand?

Big banks and financial institutions with money buy influence.

They buy the influence of the media and policy/lawmakers.

The term in the United States is referred to as lobbying.

In Mexico they call the act of bribing politicians in power corruption.

There are many parties involved of which none have served jail time nor been held with accountability.

How could they when bail is so easy for these massive institutions to pay anyway?

Lobbying usually comes in the form of ‘donations’, either to a party or institution.

SEC Commission Hester Pierce who voted no on market transparency belonged to an anti-regulatory party that compensated her outside of her career’s salary.

We see this corruption everywhere.

Gary Gensler himself is worth more than $100 million according to Bloomberg sources.

Nancy Pelosi is notorious for insider trading.

She’s amassed an almost $200 million net worth on a $190k salary.

Government officials are getting richer, and Americans need to remove them from power.

Organized crime stops from within

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We need honest people running the finances and government in our country.

If the government continues to grow richer, the population as an entirety will not stand a chance against systemic risks.

We the people decide who’s fit to run our country’s finances, and Wall Street is not it.

We also decide which politicians deserve a spot in government and many are not cut out for it.

It’s time for a new generation with integrity to step in and do what’s humanly right.

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SWIFT: U.S. and Allies Target Russian Banking System, Yachts, Mansions

SWIFT: US and Allies Target Russian Banking System, Yachts, Mansions
US and Allies remove Russia from SWIFT banking system amidst Ukraine Conflict

The U.S. and its allies are targeting Russian’s banking system along with physical assets through SWIFT.

The Biden administration announced on Saturday they’ll hunt down the assets of sanctioned Russian oligarchs.

Some of these assets include their yachts, mansions, luxury apartments, and ability to send money to their kids in prestige colleges out west.

I’m going to break down what SWIFT is and how this is going to impact Russia’s finances below.

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Welcome to Franknez.com – entrepreneur Ed Mylett recently said on Instagram to watch out for anything having to do with SWIFT. He said it was going to further escalate things.

Let’s dive right into it!

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What is SWIFT and why does it matter in Ukraine-Russia conflict?

what is SWIFT?
What is SWIFT?

SWIFT stands for Society for Worldwide Interbank Financial Telecommunications.

It is a global payments system used by more than 11,000 financial institutions and companies around the world, across 200 countries.

In short, it is a messaging system for money transfers between banks and institutions globally.

SWIFT essentially acts as the middleman for money transfers between a foreign sender and a receiver.

This worldwide bank system counts central banks of countries like the US, UK, Germany, France, Japan, India, China, Singapore, and others on its list.

The EU, UK, Canada, and US have pledged to remove Russia from SWIFT.

US and Allies cut Russian banks from SWIFT

How will SWIFT ban affect Russia?

Vladimir Putin How will SWIFT Ban affect Russia?
Vladimir Putin – Russia-Ukraine conflict – how will SWIFT affect Russia?

If Russia is removed from SWIFT, they would have to look for alternative options to send and receive money.

The ban would force Russia to isolate from most of the world and to sustain itself and its economy without the aid of other countries.

How does SWIFT affect Russia’s stock market?

Investors are bracing for volatility though economist Anders Aslund says the stock market and Russian bonds will collapse.

In the U.S., we can expect ongoing volatility as well.

Credit cards and other international means of payment will also cease for the Russian people.

Russian President Vladimir Putin is causing serious distress not only for Ukrainians but for his own country and people.

The strategy is to prevent Russia from further investing in war by eliminating its global financial networks.

US and European Union begin to remove Russian banks from SWIFT banking system

Russia gets removed from SWIFT

WASHINGTON — The U.S., European allies and Canada agreed Saturday to remove key Russian banks from the interbank messaging system, SWIFT, an extraordinary step that will sever the country from much of the global financial system.

It’s official.

The U.S. said this will ensure that these banks are disconnected from the international financial system and harm their ability to operate globally.

Iran was removed from SWIFT in 2014 following developments of their nuclear program.

Russia’s top 10 largest financial institutions holding nearly 80% of the banking sector’s total assets have been targeted.

World leaders are also limiting the sale of “golden passports”, also known as loopholes that have allowed wealthy Russians to become citizens in other countries.

The Biden administration said they’re going after their yachts, their luxury apartments, their money, and ability to send their kids to fancy colleges in the west.

What do you think of these restrictions?

Are they enough?

Be sure to leave a comment below.

How is the world reacting to the Ukraine invasion?

Ukraine protests around the world

Many Russians disagree and fear for both Ukrainian and Russian lives.

There’s a lot of negative reaction towards the government’s decision in Russia.

Russians have been rushing to withdraw US dollars at ATMS these past few days as the ruble hit a record low.

Very few have been able to obtain foreign cash with many out of luck.

The world is saying no to Putin and people on social media are representing Ukraine’s flag to show their support to the Ukrainian people.

Protests have broken out in Moscow against war with Ukraine with many Russians being arrested.

Vladimir Putin has been in power for 22 years now.

A former U.S. ambassador says Putin has become increasingly unhinged and disconnected from reality.

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The world reacts to Russia-Ukraine conflict.

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