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Bank of America bets against AMC Theatres
Market News: Bank of America increases short position in AMC
Bank of America increased their short bets against AMC in May, according to this Fintel report.
The bank now holds a total of 1,007,500 puts of AMC Entertainment Holdings, Inc. stock.
Retail investors were shocked to discover BofA was one of the top 10 financial institutions betting against the movie theatre chain last year.
And they haven’t left, but rather remained bearish on AMC.
The ball might be in their court in today’s bear market, but retail investors are already weary of the market’s integrity.
Last year, hedge funds sought out to destroy the movie theatre chain by shorting it to bankruptcy.
But retail investors put a stop to the madness – saving AMC Entertainment from collapsing, and inflicting billions of dollars in damage to short sellers.
Retail investors even closed their bank accounts with Bank of America after discovering the bank was betting against the beloved movie theatre stock.
Meme stocks were no joke.
Corporate fraud and corruption were exposed, retail made money, and the media lost all credibility.
But Bank of America isn’t the biggest bear when it comes to AMC stock.
Here’s a list of other banks and hedge funds going short on AMC.
Institutions shorting AMC stock
Who is shorting AMC?
#1. Susquehanna – 11,004,100 shares short
#2. Citadel – 4,889,900 shares short
#3. Goldman Sachs – 2,785,00 shares short
#4. Group One – 2,221,900 shares short
#5. 683 Capital – 1,992,600 shares short
#6. Bank of America – 1,007,500 shares short
#7. Wolverine Trading – 921,400 shares short
#8. Piction Mahoney – 500,000 shares short
#9. JP Morgan – 400,000 shares short
None of these institutions have closed their positions in AMC.
One hedge fund that was removed from the list is Sculptor Capital LP – the institution closed their small position at a loss this year according to Fintel.
Anchorage Capital closed last year after betting against AMC.
The hedge fund held 4,000,000 puts prior to shutting down.
Even Gabe Plotkin’s Melvin Capital is shutting down in June after GameStop crippled the short seller last year.
Bank of America might have increased their short position in AMC, but is it wise to bet against retail?
Retail has power, and I think retail is about to prove it again very soon.
I’m interested to learn what you think.
Leave your thoughts in the comment section of the blog below.
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Feds crack down on Goldman Sachs dark pools
The fed is looking into various matters relating to Goldman Sachs’ businesses and operations.
One of which stands out to retail investors as being its dark pools.
The fed is investigating the supervision and controls relating to Goldman’s high frequency trading (HFTs) and its alternative trading systems (ATSs), also known as dark pools.
Dark Pools (also benignly called Alternative Trading Systems or ATS) are effectively unregulated stock exchanges being run by the same megabanks on Wall Street that blew up the U.S. financial system in 2008 and received the largest taxpayer bailout in U.S. history. – Wall Street On Parade.
The name of Goldman Sachs’ Dark Pool that trades in the U.S. is called Sigma X2.
It used to be called simply Sigma X.
According to a publicly-available document, Sigma X is now used by Goldman Sachs to designate the Dark Pools it operates in foreign jurisdictions, which include Europe, Japan, Hong Kong and Australia.
Dark pools are the gateway that allow financial institutions to manipulate the stock market without any regulation.
Now the fed is cracking down on Goldman Sachs and it comes as no surprise since the bank has been criminally charged on many occasions before.
In October of 2020, Goldman Sachs admitted to the charges of a bribery scandal where they were fined $2.9 billion.
Other operations being looked into
The fed is looking into the institution’s advisory services and conflicts of interest.
They are also tackling the following:
Research practices, including research independence and interactions between research analysts and other firm personnel, including investment banking personnel, as well as third parties.
Transactions involving government-related financings and other matters.
The offering, auction, sales, trading and clearance of corporate and government securities, currencies, commodities and other financial products and related sales and other communications and activities.
As well as the firm’s supervision and controls relating to such activities, including compliance with applicable short sale rules, algorithmic, high-frequency and quantitative trading, the firm’s U.S. alternative trading system (dark pool), futures trading, options trading.
And finally, insider trading.
The SEC said in past years they were tackling dark pools but failed to competently execute the plan.
The issue was brought to the light by the ‘meme stock’ crowd who also exposed naked short selling and received attention by mainstream media.
Dark pools have been able to suppress stock prices across the market from reaching full demand potential.
Gary Gensler said 90%-95% of retails orders do not get processed through the lit exchange (NYSE) but rather through these dark pools.
Goldman Sachs and others have essentially stolen from retail investors as only 5%-10% of retails money actually creates demand for a stock.
For every dollar retail puts in the market, only this small percentage is reflected on a security.
That’s what happens when financial institutions like Goldman Sachs redirects orders through its dark pools.
This is a developing story.
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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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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.
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.
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
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.
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’.
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.
Facebook and Instagram faced the biggest outage since 2008. Coincidentally enough, this happened just hours after the Bank of America scandal began taking traction on social media.
Journalists who published the “Pandora Papers” also caused a scene.
The AMC community has been a beacon of hope to every retail investor fighting against market manipulation.
What will happen next?
Welcome to Franknez.com – the blog dedicated to serving the people. Apes have made a RUCKUS.
Lets get started!
The AMC Community Scores A Massive Win
Retail investors are shaking the finance world and I believe a new era is about to begin, but not without a fight.
Citadel Securities took it to Twitter after 9 months of silence, calling retail investors “conspiracy theorists”. However, transcripts of the Citadel scandal have been shared all over investing forums including Reddit’s r/wallstreetbets and r/amcstock.
You cannot hide the elephant in the room. Attempts to gaslight the people in itself is a form of psychological warfare. Something retail investors have seen within the markets one too many times.
Social media has given content creators a medium by which they can spread information and knowledge at scale. Today we experienced a social media shut down.
Why Did Facebook Shut Down?
During a livestream, Mark Zuckerberg mentioned the power of organizations and influence people now have.
Another concern surrounded the spread of misinformation and fact checking information first.
Everything Mark said makes absolutely sense. The information apes have been spreading has been data and facts collected over a period of several months.
If insiders got a hold of this research, do you think the progress for a fair market would surge? Or would it get taken down? Let me know your thoughts in the comment section below.
Everything regarding Mark Zuckerberg’s livestream mentioned people having a voice and the dangers of it.
This genius of a CEO has a way with words. He knows exactly what to say and how to say it.
Whatever type of content Facebook found to be deemed as ‘harmful content’ is the reason why Facebook momentarily experienced a shut down.
“Virality Could Be Dangerous” – Mark Zuckerberg
According to Mark, virality could be dangerous and the content would need to be addressed.
During this social media halt, Facebook was identifying accounts to ensure the spread of information is legitimate and not being spread by bot accounts.
They are also making sure the content is in line with their policies. Fortunately for the AMC community, content we’ve shared should align with these policies.
However, articles published by The Guardian on Pandora’s Papers cannot be found on Facebook anymore.
Some articles regarding the Bank of America scandal have been removed as well.
In my personal opinion, they don’t want the general public educated. I have a strong feeling that all of this information that they want hidden for now will be uncovered at some point in the future.
Facebook Censorship Raises Concerns
The censorship of gathered information by journalists and large communities is rather concerning.
People raise their voice when they want to be heard. We didn’t raise our voice though, more of us simply stood.
So how are the people supposed to defend themselves when our very own leaders cannot communicate with groups and communities in need of their help?
Now the data that’s suppose to protect the people is being censored.
To every problem there’s a solution and this a solution we’ll have to find for ourselves.
Sooner or later someone with bigger access than any of us will get our message through. The fight for a fair market continues.
The People Will Find Their Way
Facebook may have blocked journalism from reaching mainstream media, but I believe people will find their way to this information.
And that’s what ultimately matters.
But to be quite frank, not everyone will win. Self-education is something you do on your own.
And although social media wants everyone to keep living in their own bubble without disruption, they cannot hide the truth.
Facebook is one of many tools. They won’t be the catalyst for change; you will.
So even though it might not feel like it at the moment, the time will come when you realize just how much change we’ve actually made.
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