Tag: Gary Gensler (Page 1 of 2)

Citadel Pushes Back on Possible SEC PFOF Ban

SEC PFOF Ban
Market News: SEC PFOF Ban threatens corrupt institutions

The SEC is addressing the possibility of banning PFOF (payment for order flow).

Citadel and other institutions are speaking out.

Gary Gensler said there may be a conflict of interest for brokers and that too much power is concentrated in a handful of market makers.

The SEC Chairman could be re-routing retail investors into an automated system that would provide a deep pool of liquidity.

If this goes through, it will be historic.

Let’s discuss it.

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SEC Payment For Order Flow ban

SEC PFOF Ban

Gary Gensler will be speaking on Wednesday in regard to best execution for market orders.

The SEC has been under heavy scrutiny by retail investors as the agency has not made any progress to level the playfield.

The government branch that’s supposed to protect retail investors has even gone as far as taunting investors for buying ‘meme stocks’ recently.

But industry participants have quietly been saying that Gensler will likely use a speech at the Piper Sandler Global Exchange Conference on Wednesday to float several proposals.

These may include best execution and payment for order flow according to CNBC.

Last year during the ‘meme stock’ frenzy, Citadel processed retail’s orders through Robinhood.

Citadel paid Robinhood to give them those orders (PFOF).

However, retail investors don’t want their orders going to Citadel since the market maker/hedge fund/dark pool are short on ‘meme stocks’.

90%-95% of retail’s orders are not processed though the lit exchange.

Citadel takes these orders and trades them at a bargain through foreign exchanges.

Although PFOF is an expense to them, they make a lot more money processing the orders.

If the SEC PFOF ban goes through, orders would not be processed by Virtu or Citadel.

Citadel fights back

A spokesperson for Citadel Securities released the following statement to CNBC:

“It is important to recognize that the current market structure has resulted in tighter spreads, greater transparency, and meaningfully reduced costs for retail investors. We look forward to reviewing the proposals and working with the SEC and the industry towards our longstanding objective of further improving competition and transparency.”

“You need to be very deliberate on that approach,” Ken Bentsen, president and CEO of the Securities Industry and Financial Markets Association (SIFMA) said.

“We have been calling for a review of market structure for some time, but let’s be careful not to try to fix things that may not be broken,” he said. “The retail investor is getting a better deal than they ever have.”

Would you pay small trading fee if it meant Citadel and Virtu no longer reroute your orders to benefit their pockets?

Leave a comment below.

The statement alone that retail is getting a better deal than ever before is such a dishonest thing to spew.

These institutions have been taking retail’s money, using it against them, all while taking no accountability for their actions.

It’s not clear yet whether the SEC PFOF ban will go through or not.

It is certainly something worth discussing though, don’t you think?

Leave your thoughts below.

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Former Branch Chief Disappointed by SEC Meme Stock Video

SEC Meme Stock Video
Market News: The SEC attacks retail investors with propaganda

The SEC meme stock video is circulating all over social media due to its surprisingly and unprofessional attack on retail investors.

The agency was created in the 30s after the Great Crash to prevent fraud and protect retail investors from predatorial practices conducted by Wall Street.

But something happened along the way – the branch has proved to take a stance with congress in tailoring policies for financial institutions.

Who is going to protect retail investors from the corrupt?

Former SEC Branch Chief expresses her thoughts on the propaganda published by the SEC.

Let’s discuss it.

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SEC publishes meme stock video

If you haven’t watched the SEC meme stock video, it’s embedded below.

SEC Meme Stock Video

The SEC published the video on their official YouTube channel where they restricted public commenting.

Former SEC Branch Chief Lisa Braganca said she was “very disappointed to see the SEC disparage investors in meme stocks as if they must have done it thoughtlessly – especially when the SEC permits most trading to take place in dark pools.”

She then tweeted, “how about a video on dark pools Gary Gensler?”

Lisa Braganca is an activist who fights for market transparency.

She’s talked on Matt Kohrs’ channel before and has done an AMA on Reddit’s r/Superstonk answering questions about self-regulatory regulations, SEC regulation, and SEC enforcement.

Gary Gensler admitted in a Bloomberg exclusive 90%-95% of retail orders don’t go through the lit exchange but failed to mention a solution to the problem.

In an interview with Jon Stewart, the SEC Chairman fails to deliver a quality and productive discussion on solving the problems in the market.

Jon Stewart described Gary Gensler as a sheriff in town that allows blatant corruption to occur.

For Gary, it’s clear it’s more about keeping the job rather than creating a legacy.

Activism matters

wallstreetbets

The SEC’s meme stock video might try to portray retail investors as young and clueless novice investors.

But that’s far from who the retail community is.

Retail investors outsmarted hedge funds, exposed the corruption in the SEC, mainstream media, and are now attacking with this propaganda.

It’s a sign of weakness.

The retail community is made up of a very diversified group of people all fighting for the same cause.

And this is a threat to corporate media and powerful institutions.

Republicans and democrats getting together to fight for market transparency, what!?

But this isn’t just about the left and right getting together to combat corruption, it’s a global movement – and opps (opposers) don’t like this.

Trey made a great point when he stated why doesn’t the SEC tackle the problems that created meme stocks in the first place:

  • PFOF
  • Off exchange trading
  • Prime brokers
  • Arbitrage
  • Naked shorting
  • Derivative leverage
  • Etc.

Activism matters.

Retail investors must continue to raise awareness of these issues despite the propaganda.

What are your thoughts?

The SEC has ignored retail’s cry for help, and now they’ve made fun of the community with this meme stock video.

Did this unprofessionalism in our government surprise you?

I’d love to learn what you think.

Leave your thoughts in the comment section of the blog below.

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Related: Ken Griffin Attacks: "Pension Plans Destroyed by Retail Investors"

SEC News: New Proposals Threaten MOASS and Market Justice

SEC News
SEC News – NSCC 2022 003 – NSCC 2022 801

Today I’m going to touch topic on some SEC news.

Be sure to bookmark this page as it will be continuously updated for your convenience.

The SEC recently released two new rules that essentially go hand-in-hand with one another.

They are NSCC-2022-003 and NSCC-2022-801.

I’ll be breaking these down in simple terms below.

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NSCC-2022-003 and NSCC-2022-801

SEC

NSCC-2022-003 and NSCC-2022-801 essentially have to do with allocating securities into other pockets of leverage through the use of SFTs.

I’ve seen a few mixed thoughts on this SEC news on Twitter and on Reddit.

However, I’m going to break it down in the simplest form possible, so you have a better understanding of what these new SEC proposals are stating.

If you have any comments, thoughts, or opinions you’d like to make public to the community, be sure to leave a comment below at the end of the article.

What is an SFT?

An SFT is basically a leverage tool that will allow parties to simultaneously exchange the same securities between one another, in exchange for collateral.

For example, the purpose of NSCC-2022-801 is to establish new ‘membership categories’ and requirements for ‘sponsoring members’ and sponsored members where they can access this leverage tool.

It’s a safety net for institutions with overleveraged positions to hold owed securities, but ensures sales are delivered in the market, preventing FTDs and naked shorting.

SFTs involve the owner of securities transferring those securities temporarily to a borrower, typically a hedge fund.

The middleman in this scenario tends to be either a bank or a financial firm.

In return for the lent securities, the borrower of those securities transfers collateral to a party with an interest rate attached to that collateral.

SFTs in a nutshell are meant to provide liquidity to markets to make delivery on short-sales, and avoid FTDs, naked shorts, and similar situations, according to the report.

Will these rules benefit retail investors or hedge funds?

SFTs can also be seen as a program that will allow the NSCC to liquidate a defaulter’s net position in an orderly way to prevent massive market disruption.

NSCC-2022-003 limits the positions that need to be liquidated to reduce the volume of required sales activity in the market.

What regulators have essentially created is a ‘legal’ backdoor for overleveraged hedge funds to launder illegal naked short sells and FTDs.

NSCC-2022-003 and NSCC-2022-801 are essentially the same proposals only with slight updates.

Keep in mind these are only proposals.

So, while these new rules could be beneficial to retail investors as far as eliminating naked short selling in the future, it washes away the damage already created by overleveraged hedge funds today.

I strongly believe short sellers should be held accountable to closing their overleveraged positions first.

If the SEC wants to protect the integrity of the market and prevent massive disruption worldwide, they will hold short sellers accountable, relieving all pressure imposed on heavily shorted stock.

Failure to do so will mark the event as the greatest financial theft in stock market history.

We are on the brink of massive change.

History is being written; one of two decisions will be made, and the outcome will last forever.

SEC Email: rule-comments@sec.gov

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Former SEC Chairman Says “Musk Has Done Serious Damage to the Market”

Former SEC Chairman Harvey Pitt
Market News: Former SEC Chairman Harvey Pitt takes Jab at Elon Musk

(Bloomberg) Former SEC Chairman Harvey Pitt, says Elon Musk has done serious damage to the market.

When asked what he would do if he were chairman again, his response will alarm you.

It seems the SEC has deep roots of going after those who expose their shortcomings.

Elon Musk has openly talked about how the SEC fails to protect retail investors and now he’s a target.

Let’s get more into what the former SEC Chairman had to say.

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The SEC is uncomprehending of the real issues at hand

When former SEC Chairman Harvey Pitt was asked what he would do today, he responds by saying he would investigate the motive behind Elon Musk wanting to buy Twitter.

Regulators to Elon: Why do you want Twitter?

Elon Musk: For free speech.

Regulators: Right, we got that, but why?

There are a number of things the SEC could be focusing on but continue to neglect retail’s concerns.

Harvey Pitt said Elon Musk is using influencer marketing to move the masses which could be dangerous.

Necessary commentary here: I rather someone with Elon’s influence to move the masses if it means exposing the shortcomings of our incompetent regulators.

The people have already been speaking out about the SEC for years, now they just need a scapegoat do ‘de-escalate’ the sentiment.

But the truth is we need more influencers to speak out on market injustices and corruption in our government.

Elon Musk has not created any damage to the market, our incompetent leaders have.

The SEC has no public support

Here’s a red flag, the SEC has absolutely no public support.

Numerous polls on Twitter have been conducted by retail investors where more than 90% of people say they do not trust the SEC.

Investors believe the SEC has been compromised and no longer serve the people, but rather serve the financial institutions in a pay-to-play system where accountability for systemic risk is pardoned with a fine.

Unfortunately, parties on the same side will attack Elon Musk’s reputation to shut down public perception.

Former SEC Chairman Harvey Pitt fails to realize we no longer live in a world where the people sit in silence.

Social media has given communities platforms to raise awareness of injustices in the world.

The reason why regulators and affiliates have a problem with Elon Musk buying Twitter is because they don’t want the people to have that power.

We can say the same for crypto.

Crypto hedge funds are emerging as laws are being written for cryptocurrency.

Crypto is a true representation of supply and demand, unlike the stock market which is tailored specifically for financial institutions.

The SEC caters to hedge funds and market makers, not the people.

Should the president or the people elect the SEC?

SEC

The president elects the SEC Chairman and commissioners.

Which means it would be quite difficult to remove these people from power.

Is this right though?

Should it be difficult to remove government officials from power?

That doesn’t sound American to me.

The people should be allowed to vote these people into power.

Jon Stewart for SEC Chairman, anyone?

Our government is getting more powerful and greedier.

We need people such as Elon Musk to raise awareness of the corruption in the markets.

It’s time the people take their power back and start holding regulators accountable.

Read: Is the SEC Complicit to Market Injustices?

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Is the SEC Complicit to Market Injustices?

Is the SEC Complicit to Market Injustices?
SEC Chairman Gary Gensler, SEC Market Injustices

Retail investors are beginning to question whether the SEC is complicit to market injustices.

An out of touch Gary Gensler has made it rather clear that keeping his job is more important than actually enforcing the law.

In an alarming interview with Jon Stewart, the SEC Chairman merely smiles with no response when confronted about why he’s not doing anything about hedge funds abusing the market.

Many retail investors gave Gary Gensler the benefit of the doubt but after the Jon Stewart interview and cancellation of NSCC-2021-010, it’s hard to believe the SEC is on retail’s side.

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The SEC is very well aware of the issues at hand

Retail investors were told naked shares didn’t exist, and that dark pool trading was a myth.

That is until sophisticated tools have allowed retail investors to see a hint of what’s happening behind the scenes.

The use of naked shorting has been publicized on national television and dark pool trading has also publicly discussed about.

In a Bloomberg exclusive, Gary Gensler said 90%-95% of retail orders are not processed through the lit exchange but rather traded in dark exchanges.

So, while corporate media tried to gaslight investors, the cat has been out of the bag and the SEC knew this all along.

Retail investors have stressed their concerns to regulators on Twitter such as the @SECGov, @GaryGensler, @DOJCrimDiv, and even the @FBI.

The community needs more leverage.

Personalities unite

While personalities such as Jon Stewart and Charles Payne have spoken out against the injustices in the market, the community needs more influencers to speak out against these issues.

Elon Musk has in the past spoken out against the incompetence of the SEC.

He is now the number one shareholder of Twitter stock and has even joined the Twitter board.

Elon for president?

Jokes aside, it takes courage to stand up against injustice in any system.

A community member reached out today with a petition to remove AMC and GME from dark pool trading.

You can view the petition and vote for it below.

Rule 304a4 suspends a NYSE stock from trading in ATS’s, or alternative trading systems such as foreign exchanges and dark pools.

304a4 would allow AMC and GME to trade in the lit exchange for 12 months as long as the commission deems that such action is necessary in the public interest and is consistent with investor protection, per the reform founded here.

I’m pro voting if it means taking a chance on change.

#UseRule304a4Now

The people must force regulators to enforce the rules

SEC

Is there another less aggressive way to say that?

I couldn’t think of one without being intentional about the delivery of that statement.

The retail community has stayed calm, but 90%-95% of every dollar you’ve put in AMC or GameStop is being used against you.

How do we get a dog owner to clean up their dog s#*%?

While tweeting to raise awareness on social media is effective in many ways, it’s simply not enough.

Retail investors must organize petitions to amplify the message.

The important thing here is to refrain from protesting, at least at this stage of negligence.

What’s at risk?

While there are risks in the market, there is also preventable damage in the market that the SEC is neglecting.

This preventable damage is caused by market manipulation in a pay-to-play system where financial institutions lobby congress to bend rules and policies in their favor.

Businesses, shareholders, and the economy take a toll as a consequence.

This is something Jon Stewart brought up to Gary Gensler to which he had no real honest regard to it.

The risks are felt by shareholders worldwide.

Is the SEC complicit to market injustices?

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Or has a system been created solely as a facade where even their own employees don’t realize it?

Retail investors are facing a real issue and they must prevent it from being swept underneath the rug.

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

Leave a comment below.

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New SEC Rules Could Lift Suppression on ‘Meme Stocks’

New SEC rules could lift suppression on meme stocks
Gary Gensler – New SEC rules 2022 – Meme Stocks could surge

There are new SEC rules coming into play that could very well lift suppression imposed on so called ‘meme stocks’.

The SEC just released a report outlining the variety of ways they intend on protecting retail investors from market manipulation.

Heavily shorted stocks such as AMC and GameStop will skyrocket if these SEC rules are enforced.

And I’m going to break down why in this article below.

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Welcome to Franknez.com – the SEC is proposing new rules that call for short seller transparency. In their report, they acknowledge what retail investors have been saying and have now come up with a plan.

Let’s dive right into it!

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New SEC rules propose market transparency

new SEC Rules propose market transparency
Market News: New SEC Rules propose market transparency | SEC on short sellers | SEC on hedge funds – Meme Stocks

The SEC is proposing a new rule designed to provide greater transparency through the publication of short sale related data.

Short sellers will be required to submit a report on a monthly basis specifying their short positions and short activity data under the 13f-2 rule.

This proposal is significant because it’s going to provide regulators with insight on every short seller trade.

With this proposal in play hedge funds will have no other option than to report overleveraged positions, or refrain from imposing predatorial strategies.

Because short sell activity will be monitored, hedge funds are stuck playing fair.

The SEC has acknowledged that short selling has been used to manipulate the market to drive share prices down.

They also confirm retail investors have been targets of “short and distort”.

Short and distort is a strategy used to drive a stock’s share price down using publicity campaigns and then capitalizing from the drop.

Elon Musk: Hedge funds tank stocks using “short & distort”

Regulators acknowledge market manipulation in report

The SEC said in their report, “while short selling can serve useful market purposes, it also may be used to drive down the price of a security, to accelerate a declining market in a security, or to manipulate stock prices.”

This statement alone is very significant for many reasons.

  1. The SEC doesn’t need to be convinced of market manipulation anymore, they’ve acknowledged it.
  2. They understand exactly what’s happening in the markets and how it’s affecting retail investors.

Now it’s just a matter of finding solutions to lift the suppression being imposed on heavily shorted stocks such as AMC and GameStop.

Disclosure of short sell positions and activity could very well be the start of it too.

If you were slacking off at work but now have your boss micromanaging you, you’d be more inclined to refrain from slacking off, correct?

It’s this type of micromanaging we need to see regulators impose on short sellers so that the demand from retail orders accurately reflect on the price of a security.

Gensler: 95% of retail orders do not go through lit exchange

Rule 13f-2 enforces 10b-21

SEC rule 10b-21 and 13f-2

Rule 10b-21 addresses failure to delivers in securities that have been associated with naked short selling.

This rule is meant to prohibit abusive naked short selling.

However, there has been no way of identifying overleveraged positions or short sell activity to enforce no such acts are carried throughout the market.

That’s where rule 13f-2 comes into play.

13f-2 provides the commission for public disclosure:

  1. The name of the issuer
  2. Title
  3. Class
  4. CUSIP number (a unique identification number assigned to stocks and registered bonds in the United States and Canada.)
  5. and number of short sales of each security

When enforced, this SEC rule will allow regulators to identify everything there is to know about a hedge funds short selling activity.

Community, this is quite big.

Public disclosures will occur every month.

“Buy to cover” rule and CAT firms

Proposed Rule 205 would establish a new “buy to cover” order making requirements for certain purchase orders affected by a broker-dealer.

The Proposal to Amend CAT would require CAT reporting firms to report short sale data not currently required that would enhance regulators’ understanding of the lifecycle of a trade – from order origination and through order execution and allocation.

This means the SEC will now have eyes on where a short sell comes from and where it gets processed and moved to.

Here is where naked shares may be exposed, recorded, and become obligated to get closed.

This Proposal to Amend CAT holds every party during the trade of a short sell accountable.

How do these rules lift suppression on heavily shorted stock?

The SEC says these proposals could help to advance the policy goal of investor protection by deterring market manipulation.

This means that when enforced, hedge funds will now be forced to play by the rules since all data is being recorded through a variety of parties, making it complicated to report inaccuracies.

The SEC on illegal short selling and “Bear Raids”

Bear Raids
The SEC on Bear Raids – ‘Meme stocks’ plummet

The SEC’s report is filled with information retail investors have been raising awareness about for over a year now.

They briefly go over the spread of false information from which short sellers profit from the decline of a stock’s share price.

“Market manipulators may seek to spread false information about an issuer whose stock they sold short in order to profit from a resulting decline in the stock’s price.”

This is something Elon Musk just recently spoke to CNBC about.

Hedge funds and corporate media have played a big role in “Bear Raids”.

Bear raids are an illegal practice to plummet a stock’s price through concerted short selling and the spread of false or negative information about the target.

This influences public sentiment and opinion.

We’ve seen this illegal practice too many times with AMC and GameStop.

Platforms owned by News Corp. attacked AMC and GameStop by publishing articles to derail retail investors from purchasing the stocks.

As millions of retail investors bought ‘meme stocks’, hedge funds shorting the stocks lost billions of dollars.

CEO and founder of hedge fund Citadel Ken Griffin coincidentally has a stake in News Corp.

The SEC warns short sellers of “Short Squeeze” risk

sec warns short sellers of short squeeze risk - meme stocks short squeeze

A short squeeze poses massive risk to not only hedge funds and market makers but also to small short sellers.

The SEC did not miss outlining the risk a short squeeze has on short sellers in their market transparency report.

AMC and GameStop’s current reported short interest is more than 20% each.

This is more than enough short interest to squeeze shorts from their positions.

And because hedge funds have been overleveraging their positions, this is no ordinary play anymore.

Hedge funds now have a ticking time-bomb that may cause systemic risk.

Will AMC and GameStop experience a managed short squeeze?

Leave your thoughts in the comment section below.

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DOJ Targets Muddy Waters for Flooding Market with Fake Orders

DOJ Targets Hedge Fund for Flooding Market with Fake Orders
Hedge Fund Under Investigation for illegal short selling strategies

The Justice Department is targeting Muddy Waters for flooding the market with fake orders.

This ongoing investigation is one of the many probes targeting hedge funds for illegal short selling strategies.

After the ‘meme stock’ frenzy early last year, retail investors have been demanding the SEC investigate hedge funds after they removed the buy button specifically for ‘meme stocks’.

AMC and GME stock continue to be heavily shorted today weighing in at a high +20% short interest each.

Will regulators release the pressure suppressing these stocks to create a short squeeze?

That’s what we’re here to find out.

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Welcome to Franknez.com – if you’ve been actively demanding for change in the markets, your voice has finally sparked it. Here are the effects a year later.

Let’s dive right into it!

Short-seller Carson Block receives FBI search warrant

DOJ investigates Muddy Waters for flooding market with fake orders
DOJ investigates Muddy Waters for flooding market with fake orders

The Founder of Muddy Waters Research was served with a search warrant by an FBI agent.

Muddy Waters Research is a hedge fund based in San Francisco, California with $227 million AUM.

Federal prosecutors are investigating whether short sellers conspired to drive the prices of stocks down.

The DOJ is looking at hedge funds to identify illegal trading tactics in the markets.

We’ve seen tactics such as naked shorting, high dark pool trading, and OTC trading just to name a few.

Gary Gensler just announced on a Bloomberg exclusive that 90%-95% of retail market orders do not get processed through the lit exchange.

This real problem allows short sellers to abuse the tools they have at their disposal.

Who will give retail investors 90%-95% of their return?

Hedge fund under investigation for “spoofing”

Spoofing is the term given to a tactic that illegally ploys fake orders into the market in to drive the share price of a stock down.

Millions of retail investors have noticed spoofing during intraday trading in both AMC and GME stock for over a year now.

The buy-to-sell ratio has shown us that short sellers are using this tactic to end trading days on red even when 80%-90% of the orders were bought for.

Retail investors have been buying and holding these stocks en masse but for months now the price charts don’t correspond to the demand.

Spoofing is a technique that has suppressed AMC and GameStop’s share price for more than a year now.

While short selling in itself is not illegal, hedge funds have overleveraged their power ever since retail became a real competition.

Hedge funds such as Mudrick, Anchorage, and Archegos are a few who threw in the towel.

Citadel Securities received a $1.2 billion lifeline from Sequoia and Paradigm early this year too.

The hedge fund lost billions last year betting against ‘meme stocks’.

DOJ investigates hedge fund for “scalping”

Muddy Waters Hedge Fund under investigation
Muddy Waters Hedge Fund under investigation

Scalping is a term used when short sellers cash out their positions without disclosing it.

By not disclosing it, the share price of a security does not surge.

The DOJ is investigating hedge funds for this illegal short selling tactic.

If hedge funds have indeed been using scalping to suppress ‘meme stocks’, then this too would make a lot of sense.

I’d love to know your thoughts in the comment section of the blog below.

BREAKING: Citadel Under Investigation by Department of Justice

Will retail finally see price surges?

Retail investors want their assets to reflect the price of the true demand in the market.

*Regulators must lift the suppression imposed on stocks and let the share price run its natural course based on its supply and demand.

This is what activists must demand of our regulators.

Several short squeeze plays are bound to take off once hedge funds and market makers are prohibited from using predatorial strategies under law.

Read: Regulators are taking Morgan Stanley and hedge funds to court

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Elon Musk: Hedge Funds Tank Stocks Using “Short & Distort”

Elon Musk news on hedge funds, short sellers, and DOJ
Elon Musk news on hedge funds, short sellers, and DOJ

Elon Musk, one of the most influential people and geniuses of our time is speaking out on hedge funds and the SEC.

The Tesla and SpaceX CEO exchanged emails with CNBC on this exclusive take and shares his thoughts on short sellers and regulators alike.

And according to CNBC the SEC declined to comment.

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Welcome to Franknez.com – today’s market news is significant because we have a high-profile influencer speaking out against injustices in the stock market. I’m going to go over big key points from the report.

Let’s dive right into it!

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Elon Musk on hedge funds and short sellers

Elon musk on hedge funds and short sellers

In this CNBC exclusive, Elon Musk says hedge funds have used short selling and complex derivatives to take advantage of retail investors.

Something retail investors who purchased so called ‘meme stocks’ last year found out very easily.

The retail community known as ‘apes’ have been standing up to the injustices brought forth by hedge funds.

Predatorial tactics have suppressed the share prices of AMC and GameStop to further refrain retail from squeezing short sellers from their positions.

The complex derivatives Elon is referring to could be an array of things such as options trading, HFT, swaps, borrowed stock, and even naked shares.

Which in retrospect are all predatorial tactics hedge funds and short sellers use to profit from falling stock prices even when the inflow is largely greater than the outflow.

Tesla CEO speaks out on publicity campaigns that drive stock prices to the ground

The Tesla CEO says hedge funds will short a company, conduct negative publicity campaigns to drive the stock price down, then cash out and do it multiple times over.

This tactic is what’s known as “short and distort”.

Hedge funds use impose their influence on corporate media such as The Fool, Wall Street Journal, and MarketWatch to scare people out of their money.

The Fool - Forget AMC
The Fool – Forget AMC: “Buy this instead”

One of the biggest fear mongers has been The Fool.

They abused their reach to derail curious investors from investing in AMC Entertainment and GameStop stock.

AMC Entertainment was up more than 3,000% at one point and mainstream media caused many investors to miss the opportunity.

And for others, to get in late, resulting in several losses.

The conflict of interest derives from the connection between the hedge fund Citadel and News titan, News Corp.

News Corp owns the Wall Street Journal, DowJones Newswire, MarketWatch, and Barrons.

These are all companies that have put out hit publications attacking AMC and referred to a specific group of activists as ‘conspiracy theorists’.

On the contrary, the retail community is religious about facts and evidence.

Dark pools and naked shorting are only two of many injustices retail investors have brought to light.

The SEC Commissioner confirmed on a Bloomberg exclusive that 90%-95% of retail market orders are not processed through the lit exchange.

Elon on the SEC and regulators

Elon Musk has never been too fond of the SEC.

In 2018 he referred to the agency as the “Shortseller Encrichment Commission”.

In 2020 he posted this statement on Twitter about the SEC.

The CEO made another anti-SEC post on Twitter again after the interview with CNBC.

And retail investors are cheering him on for being a voice against corruption in the market.

The SEC has been held accountable as being implicit to hedge fund market manipulation.

They’ve imposed “fees” that have allowed hedge funds to continue their predatorial strategies.

There has been no serious consequence or justice protecting retail investor.

The agency has also failed to recognize the manipulation in both AMC and GameStop in a report released in December of 2021.

Most retail investors do not trust the SEC according to a poll conducted by community member on Twitter.

The poll below shows that out of 10,511 votes, 97.3% of investors do not trust the agency.

Why are hedge funds being investigated?

why are hedge funds being investigated?
Ken Griffin – Citadel Investigation

Hedge funds are being investigated for flooding the market with fake orders to drive stock prices down, a term known as “spoofing”.

Muddy Waters was recently raided by the FBI for using this predatorial tactic.

Citadel is being investigated too according to a Bloomberg report.

The Department of Justice is involved.

They are targeting several hedge funds and banks in relations to market fraud and manipulation.

Banks involved in the investigations so far are Morgan Stanley and Goldman Sachs.

Bank of America is one of the top 10 financial institutions shorting AMC Entertainment stock.

The bank has yet to be announced in the probe.

Elon Musk told CNBC he’s glad to see the Justice Department is investigating short sellers.

“This is something the SEC should have done, but, curiously, did not.” stated Elon.

He spoke out against short sellers in 2021 during the “meme stock” frenzy.

This was during the time when retail began buying heavily shorted stocks en masse.

Opinion: We need more activists like Musk

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The retail community has done an incredible job at raising awareness of injustices in the market.

The ‘ape’ community without a doubt made today’s progress possible.

Now, retail investors continue to demand regulators to lift short selling suppression imposed on stocks such as AMC and GameStop.

We need more public figures to speak out on the matter.

Would you agree?

Leave a comment below with your thoughts.

Read: AMC Entertainment CEO mocks hedge funds for the second time

You can follow me on: Twitter | Facebook | YouTube | LinkedIn


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.

Join the newsletter to be part of a large activist community fighting for market transparency.

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

franknez.com

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.

Join the newsletter to be part of a large activist community fighting for market transparency.

You can follow me on: Twitter | Facebook | YouTube | LinkedIn

Subscribe to my YouTube channel for more content

The ‘Apes’ Have Exposed Market Corruption: But What’s Being Done?

the apes have exposed market corruption but what's being done?
Jon Stewart Gary Gensler Interview – ‘Apes’ have exposed market corruption

The ‘apes’ have exposed a number of problems within the financial markets and now experts are curious as to what’s next.

Investors have been fighting the SEC on market injustices over the decades but have had no luck in creating change.

Jon Stewart recently interviewed Gary Gensler but even the SEC Commissioner seems to be hearing a foreign language when asked how we can find solutions.

What is it going to take to create change in the markets?

franknez.com

Welcome to Franknez.com – the ‘ape’ community has been exposing market manipulation for over a year now. The SEC has acknowledged this, but what are they doing about it?

Let’s dive right into it!

Join the newsletter to receive weekly market news and AMC stock updates.

Plus, receive my personal stock and crypto list when you opt in.

Sure, there are proposals but…

SEC New Rules and proposals

The SEC released a market transparency report going over proposals that would essentially micro-manage short seller activity.

Now, on paper these proposals are outstanding and could lift suppression imposed on heavily shorted stocks.

However, retail investors aren’t convinced the SEC will actually enforce them.

Many new retail investors aren’t willing to stick around in the market if it weren’t for AMC or GameStop’s short squeeze potential.

It makes you wonder, is the stock market doomed?

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

Which makes us question how would he benefit from protecting retail investors?

Leave the answer in the comment section below.

Lobbied politicians and government officials seem to be a real problem, something I’ll discuss more about down below.

Jon Stewart calls Gary Gensler out on blatant market manipulation (MUST WATCH)

Confronting Gary Gensler on Market Corruption
Confronting Gary Gensler on Market Corruption

Jon Stewart asked Gary Gensler to give him a better system because the current one is getting its butt kicked.

To which Gensler responds with “I believe in this system, I believe in our democracy.”

This statement demonstrates that Gary Gensler isn’t willing to make drastic changes to level the playfield, at least in my opinion.

Jon does an incredible job at asking the hard questions and being very direct with his statements.

Watch this short clip of the interview.

Jon Stewart Gary Gensler Interview Clip – Market Corruption

Many of these clips have been circulating Twitter and retail investors now seem convinced Gary Gensler is not the person that will be calling the shots here.

After all, the SEC does have a sign that says “coffee donations” to which Gensler implies they lack many resources, something I’ve touched about in previous articles.

He dodges a lot of very straight forward questions and gets off topic to manipulate the conversation a little to play in his favor.

Though Jon did mention in a space call on Twitter he did think Gensler was honest.

You can watch the full episode on Apple TV for more context which I highly recommend.

Apple TV is free for a week, and you can cancel any time before renewal.

No, this is not a sponsor.

Congress lobbied by financial institutions write the laws

congress lobbied by financial institutions
Market corruption – congress lobbied by financial institutions

In this exclusive interview Gary Gensler says congress writes the laws and that the SEC only has civil enforcement power.

This means that lobbyist indirectly write the laws when pitching proposals and regulations to congress according to Jon Stewart.

Financial institutions use their money and influence to keep lawmakers and regulators in check.

And while the Department of Justice may be looking into banks and hedge funds, will the hunt be successful?

Elon Musk is quite optimistic about the DOJ taking action saying this is something the SEC should have done, but curiously did not.

What’s lacking here is accountability.

And Gensler says they need whistleblowers to individually come out and let them know what they know.

He says nothing is stronger than someone actually demonstrating accountability.

So, while regulators are aware of the issues retail investors are facing, it’s going to take individuals to come out and address these problems through the SEC’s whistleblower program.

Do you think this is a solution?

Leave your thoughts in the comment section below.

How can retail investors fight back?

how can retail investors fight market corruption?
How can retail investors fight market corruption?

Raising awareness through dedicated persistence is how retail’s message gets louder and has gotten this big.

It’s going to take time, but as Jon Stewart said on a Twitter space call, they’re betting on retail to get impatient and throw in the towel.

But ‘apes’ are far from throwing in the towel.

AMC just released their Q4 earnings call, and it came as no surprise that over 90% of retail investors now own the float.

Previously only 80% of retail owned it so we’re seeing that more investors are buying and holding AMC stock in efforts to squeeze shorts from their positions.

By raising awareness of the problems retail is facing, ‘apes’ have been able to attract more high-profile figures to join the fight for a fair market.

This new wave of retail investors did not come this far to only come this far.

The ‘ape’ community continues to grow and be a beacon for change.

What do you think can be done?

While I don’t necessarily think investing in the stock market in general is a complete gamble, AMC and GameStop are unique plays.

That’s because they are highly potential short squeeze trades.

While 65% of you so far say you will not invest in the stock market again after AMC squeezes, there are a variety of ways to invest in the stock market that many have not been exposed to.

Long term, safe investments such as index funds, REITs, and dividend stock investing will still beat inflation.

But that doesn’t mean the problems in the markets should be ignored.

Especially in incredible trades such as AMC and GameStop.

In your eyes, what do you think can be done to set the proper system in place?

Knowing what you know now, where does one start to begin manifesting change for a fair market?

Leave your thoughts below.

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Related: 95% of retail orders don’t go through lit exchange


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