Tag: Goldman Sachs

Bank of America Increases Short Position in AMC

Market News: Bank of America AMC
Market News: Bank of America increases AMC puts

Bank of America and JP Morgan continue to bet against AMC despite the repercussions.

Like hedge funds, banks have also been under much public scrutiny for betting short in the market.

Regulators subpoenaed some of the largest banks and hedge funds after investigating communications between the two parties earlier this year.

Goldman Sach’s dark pools were investigated in May – a popular issue amongst the retail community.

Combined, hedge funds and banks have millions of shares working against the largest movie theatre chain in the world.

And in this article, I’m going to break down the most recently reported numbers.

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Bank of America bets against AMC Theatres

Market News: Bank of America Increases Short Position in AMC
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

Institutions shorting AMC stock - who is shorting AMC
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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Goldman Sachs’ Dark Pools Are Under Federal Investigation

Goldman Sachs dark pool under investigation
BREAKING: Goldman Sachs dark pool is under investigation

Goldman Sach’s dark pools are under investigation according to an SEC report.

The SEC published a report highlighting what essentially seems to be a deep audit.

This is not the first time Goldman Sachs has been fined or investigated for abusing its power.

Dark pools played a massive part in the recession of 2008, but dark pools were never banned.

Will something finally be done about it this time around?

In this article I’m going to break down everything they’re looking into, starting with Goldman Sachs’ dark pools.

Let’s break it down together.

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

Let’s dive right into it!

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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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View the SEC report here.

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Related: Here's Why It's Taking AMC So Long to Skyrocket

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