Tag: Market Manipulation (Page 1 of 5)

SEC Spent $460K on “Investomania” Meme Stock Ad

SEC Meme stock ad campaign costs
Market News: SEC spends nearly half a million dollars ridiculing retail investors.

The SEC spent nearly half a million dollars on the ‘meme stock’ ad campaign that ridiculed millions of retail investors.

A Twitter user had sent in a FOIA application inquiring about the costs to produce “Investomania”, the video published on the SEC’s official YouTube channel.

The agency that was established in the early 1930s to protect retail investors took a shot at millions of investors who participated in the ‘meme stock’ frenzy.

The frenzy became one of the biggest movements worldwide and exposed Ken Griffin’s Citadel, mainstream media, and the SEC in a web of conflicts of interest which catered to an array of market injustices that favored institutional investors over retail investors.

“Investomania” was a cold hit to the millions of average people who joined the stock market for the first time.

It ridiculed new investors and diminished what could possibly be one of the biggest movements in market history.

Let’s discuss it.

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Is the SEC Complicit to Market Injustices?

is the SEC complicit to market injustices?
Gary Gensler – SEC Chairman.

The SEC has put retail investor’s concerns on the backburner for over a year now ever since the ‘meme stock’ frenzy of 2021.

Although Redditors and social media participants from around the world managed to create big success by driving up the share price of AMC, GameStop, and others (BBBY, etc.), much much more was discovered during the process.

This is why retail investors simply couldn’t just walk away.

‘Meme stocks’ became the average person’s first-ever investment in the stock market which means many entered plays based on FOMO, or fear of missing out.

When these stocks began to come back down, many faced serious losses in the process.

Those who didn’t take profits argued that the stocks were heavily manipulated and suppressed from further rising.

The U.S. House Committee on Financial Services found Robinhood and Citadel negotiated in ‘blunt’ conversations the night before ‘meme stocks’ were halted.

The DTCC on the other hand waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021.

This act saved institutional investors from taking further damages and completely ripped off retail investors from either cashing in larger profits or becoming profitable in the first place.

The SEC Shows a Warm Welcome to New Retail Investors

SEC Chairman Gary Gensler said in an interview with Jon Stewart that they barely have the budget for coffee at their agency, let alone the budget to fight crime in the market.

Dark pools, off exchange trading, and various other loopholes have been used to work against retail investors feeding the pockets of multi-billion-dollar hedge funds.

Many have wondered whether the SEC or Gary Gensler himself is lobbied into allowing these market injustices to occur – a fine to play if you will.

Out of all the incredible findings retail investors have brought to surface, the SEC decided to spend nearly half a million dollars to ridicule retail investors – the very same people they swore to defend, instead of tackling real market issues.

A Twitter user shared the campaigns production and advertising expenses with the retail community.

U.S. Securities and Exchange Commission FY22 Public Service Campaign.
U.S. Securities and Exchange Commission FY22 Public Service Campaign.
'Investomania' advertising costs.
‘Investomania’ advertising costs.

The costs of the “Investomania” meme stock advertisement campaign also include skits on ‘crypto’, ‘margin calls’, and ‘easy money’ aimed at the retail crowd.

Former SEC Branch Chief Lisa Braganca stated she was “very disappointing to see 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… how about a video about dark pools @GaryGensler?”

Leave your thoughts below

Is the SEC complicit to the market manipulation that’s occurred over the decades?

What do you think was the purpose of the SEC’s ‘Investomania’ meme stock advertisement campaign?

Was it merely fun and games or do you think it was out of line?

Leave your thoughts below.

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Citadel Has a Long History of Market Manipulation

Citadel Market Manipulation
Market News: Citadel and friends are entering the crypto space | Ken Griffin.

Citadel and friends are entering the crypto world very soon.

EDX Markets plans to bring ‘traditional finance’ to the crypto space, a not so ‘traditional’ space to begin with.

The exchange made up of Citadel, Sequoia, Paradigm, Virtu, Charles Schwab, and Fidelity is debuting in November.

EDX Markets will start trading a limited number of spot, crypto tokens starting with a November trial period, with the official launch in January, per Bloomberg.

Similar to trading equities and options, EDX will allow investors to buy and sell digital assets through their existing broker dealer, rather than an outside venue or directly through a crypto-native exchange. 

“We’re taking some of the best features of traditional finance and bringing it to the digital markets to make it more efficient, and bring that cost saving to investors,” Nazarali said.

Nazarali is the former global head of business development at Citadel Securities.

But as many are aware, these financial institutions have a long history of playing unfair.

Will these sharks taint the crypto space too?

Let’s look at Citadel’s market manipulation history.

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Citadel Market Manipulation

2015

In 2015, an account operated in China by the brokerage arm of US hedge fund Citadel was suspended.

It was the latest casualty of regulators’ hunt for market manipulators and short sellers at the time.

The China Securities Regulatory Commission said that the Shanghai and Shenzhen stock exchanges had suspended 24 accounts as part of a probe into high-frequency trading.

The investigation focused on a practice known as “spoofing” in which an investor submits a buy or sell order but then withdraws it before a sale is completed — a practice that can mislead investors by creating the false impression that a stock is trading at a particular price.

Citadel confirmed that one of its accounts managed by Guosen Futures was among those suspended.

2017

SEC Citadel

In 2017 Citadel paid the SEC $22.6 million to settle charges of misleading conduct.

The hedge fund misled customers about the way it priced trades.

The SEC found that between 2007 and 2010, Citadel used two algorithms to execute stock trades on customers’ behalf that gave investors a worse price for their trades, even when Citadel knew better prices existed elsewhere.

“This affected millions of retail orders,” said Stephanie Avakian, the acting director of enforcement at the SEC at the time.

Citadel neither admitted nor denied the findings.

2021

In 2021, Failure-to-Delivers (FTDs) rose dramatically in the period leading up to January 28th, 2021, a phenomenon consistent with increasing short interest by market makers such as Citadel Securities.

FTDs are indictive of naked short selling, which occurs when a short seller does not actually possess the security it is supposed to borrow.

This practice is largely inaccessible to individual investors but accessible to market makers.

At the time, Citadel, Robinhood, and others restricted retail investors from buying ‘meme stocks’ in order to prevent escalating institutional losses.

Citadel eventually lost billions after betting against AMC Entertainment in 2021.

But the entire system needs a refresh – The DTCC waived a total of $9.7 billion of collateral deposit requirements on January 28, 2021, saving brokers, and screwing up retail investors.

2022

The Chicago Tribune published a piece explaining exactly what retail investors have been warning the SEC about.

Citadel Securities’ dark pool dominates a big part of the financial world, accounting for as much as half of U.S. stock market activity.

The Chicago Tribune says this prominent dark pool is run by Chicago Billionaire Ken Griffin’s Citadel Securities and has been targeting small scale retail investors.

And they’re not wrong.

Dark pools are typically involved in payment for order flow (PFOF), where they pay broker firms to receive retail order flow.

Brokers such as Robinhood and TD Ameritrade accept payment for order flow.

But retail investors have been bringing these nefarious practices in the market to light.

Leave a comment below

Leave your thoughts in the comment section below.

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Shoutout to @EduardBrichuk for compiling some of this information on Twitter.

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AMC FTDs Top 51.6 Million This Year Through June

AMC FTDs
Stock Market News: AMC FTDs top 51.6 million year-to-date

AMC’s FTDs have skyrocketed this year.

These FTDs (failure-to-deliver) are millions of orders unaccounted for in the lit market.

An FTD happens when a party is unable to deliver a tradable asset or meet a contractual obligation in a transaction.

Naked short sales and selling an asset without borrowing it first are two of the leading causes for failures to deliver.

I’m going to break down how many FTDs AMC has had every month this year so far.

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Number of AMC FTDs per month

AMC FTDs
AMC FTD Chart – AMC Naked Shorting – AMC Failure to Deliver

AMC Entertainment Holdings, Inc. has had millions of FTDs this year.

Here they are broken down per month.

January 2022: 2,016,672

February 2022: 3,138,919

March 2022: 6,011,866

April 2022: 4,326,160

May 2022: 1,091,540

*June 2022: 35,071,358

Total: 51,656,515 so far.

Last month AMC FTDs surged past 35 million!

June saw the highest AMC FTDs it’s seen all year.

The dollar amount of these FTDs mount up to hundreds of millions of dollars.

The alarming number of failure-to-delivers in AMC goes to show institutions shorting AMC stock are getting away with fraud.

They are creating naked shares to short AMC stock by essentially writing checks out that end up not clearing, resulting in FTDs.

In the process, short sellers are able to make profit without any accountability.

March had the highest amount of AMC FTDs so far with more than 6 million being recorded.

In March we saw AMC surge past $34 per share before it was halted and suppressed alongside GameStop, which surged to $199 per share.

Related: 98% of Ticker Had Few FTDs Than GameStop

Final thoughts

AMC Naked Shorting
AMC Naked Shorting – AMC Failure to Deliver

The grand scheme of naked shorting has been the most blatant market manipulation in finance history.

Yet regulators such as the SEC can’t seem to plug the loophole.

It’s up to retail investors to demand change in the markets to level the playfield.

NSCC-2022-003 could be a start to eliminating fire selloffs and potentially limiting naked short selling.

But it’s not enough.

The retail community must continue to raise awareness of these predatorial market conditions in hopes to create real change for all participants.

I’d love to know what you think.

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

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The mission of this platform is to spread the truth majority of corporate media isn’t willing to, by giving the people in our community a voice.

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Thank you for being a reader.

– Frank Nez


JP Morgan Manipulated Gold to Keep Hedge Funds Happy

JP Morgan manipulated gold
Market News: JP Morgan manipulated gold and silver market

An ex-trader says JP Morgan spoofed gold to keep hedge funds happy.

He says client orders made a lot of money for the bank.

Big hedge funds like Moore Capital Management and Tudor Capital Corp. were so important to JPMorgan Chase & Co. that its precious-metals traders routinely manipulated gold and silver markets to get the best prices on client orders, the former trader for the bank told a Chicago jury. 

“They brought in a huge volume of trading, which made the bank a lot of money and our team a lot of money,” John Edmonds, a former trader on JPMorgan’s precious metals desk, said on Wednesday when asked about the incidents.

This isn’t the first time a bank colludes with hedge funds to cheat non-institutional investors from their money.

Here’s the latest market news.

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JP Morgan manipulates gold and silver market

Gold and Siver Market
Gold and Silver Market

Edmonds worked on the JP Morgan precious-metals desk for more than a decade and pleaded guilty in 2018 to conspiracy and commodities fraud related to “spoof” trading. – Bloomberg

Spoofing is a term used when traders place market orders and cancels them before the order is fulfilled, initiating fake orders into the market without the intent of paying them.

Earlier this year the DOJ targeted hedge fund Muddy Waters for flooding the market with fake orders.

John Edmunds is currently testifying against his former boss, Michael Nowak, the longtime head of the trading desk, gold trader Gregg Smith and hedge funds salesman Jeffrey Ruffo.

They’re accused of thousands “spoof” trades in which huge orders were placed and quickly canceled in the hope of moving prices up or down so they could complete desired trades.

Prosecutors allege the traders were influenced by the needs of hedge fund clients, whom at times were looking to buy or sell millions of dollars in gold or silver in a matter of seconds or minutes.

Edmonds said that when a client needed an order filled, everyone on the desk would stop trading so as not to “get in the way” of filing that order.

Edmonds said he’d regularly watch Nowak or Smith use spoof trades to fill those order, per Bloomberg.

Bank gets caught red-handed

JP Morgan Precious Metals Desk
JP Morgan Precious Metals Desk

Jurors were shown instant messages between Ruffo and traders at Moore Capital and Tudor, as well as Smith’s trading records around those communications as evidence of improper trading in gold and silver futures.

Edmonds, who sat near Ruffo and Smith, said the hedge fund clients were “price sensitive” and concerned about even small differences in prices of gold and silver given the massive size of their orders.

One example from prosecutors was an order on Dec. 12, 2011, by Moore Capital, which sought to sell 1 million ounces of silver at $31 an ounce.

Smith placed orders to buy 1,190 futures contracts, each for 5,000 ounces of silver, data presented to the jury showed.

Edmonds said that was consistent with a spoof trade designed to drive the price higher, where Smith wanted to sell.

Minutes later, Smith sold 200 contracts, which is the equivalent to 1 million ounces, and canceled his buy orders.

The jury also heard about a Jan. 18, 2012, gold trade on behalf of Tudor where Ruffo was asked to unload more than 900 contracts.

As the price of gold decreased around 8 a.m., Tudor’s James Phelan wrote to Ruffo, “tell Gregg to wake up,” according to a chat log.

Shortly thereafter, Smith started entering orders on the buy side. “He was trying to move the market higher so he can sell at a higher price for an important client,” Edmonds said.

Sources – Bloomberg.

Will JP Morgan face any consequences?

JP Morgan manipulated gold and silver market to keep hedge funds happy
JP Morgan manipulated gold and silver market to keep hedge funds happy

The case is US v. Smith et al, 19-cr-00669, US District Court, Northern District of Illinois (Chicago).

For the reasons explained in this Opinion, the Defendants’ motion to dismiss, R. 114, is denied except for the bank fraud counts (Counts 5–7).

Those counts are dismissed.

The remainder of the Superseding Indictment survives.

You can view the entire case text, opinion, and details here.

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Related: Chicago Tribune Says Citadel Securities' Dark Pool Targets Small Investors

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franknez.com

Your support helps maintain all the costs it takes to run a blog at this scale.

The mission of this platform is to spread the truth majority of corporate media isn’t willing to, by giving the people in our community a voice.

Your dedicated support keeps this platform going.

Thank you for being a reader.

– Frank Nez


Will The Apes Successfully Take Down Wall Street Again?

Apes vs wall street
Stock Market News and AMC Updates: Apes VS Wall Street

Retail investors known as ‘apes’ were able to do what no one else in history has ever done before.

They exposed fraud in the stock market and uncovered conflict of interest no one was ever supposed to see.

In the midst of it, a handful of investors made money, causing massive hedge funds to lose billions of dollars.

Do the ‘apes’ have the power to win big again?

And if so, what’s it going to take?

Let’s discuss it.

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Shorts think retail investors are experiencing fatigue

Reuters just published an article giving us some insight to what suits think of the current ‘meme stock’ situation.

They understand that short interest in AMC is rising despite its fundamental improvement.

Shorts seem to have gained some confidence in the bear market – go figure.

Wedbush Securities Inc. says it doesn’t seem like it’s a great time to short AMC.

Bets against the company “reflect that institutional investors think that the retail shareholders are experiencing fatigue here.”

While it’s true buying has cooled down, apes are still very much in this play to squeeze shorts from their positions.

Many investors have gone on the offense for months now and are supporting AMC Entertainment outside the market.

Shareholders have become so loyal to the brand that they’ve become the very guests attending the movie theatres.

Volume might not be on the rise like last year, but movie theatre attendance sure is.

The ape community has grown to understand just how important the fundamentals of the company are, despite a short squeeze not requiring them.

Retail investors might look like they’re on the sideline, but little do shorts know they’ve been on the offense the entire time.

A beacon for change

We the investors
We The Investors – apes sign to ban PFOF

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

Community members recently gathered on social media to sign a petition going out to the SEC, created by activist Dave Laurer.

We The Investors is an initiative to get retail’s concerns in front of SEC Chairman Gary Gensler in efforts to raise awareness of the problems retail investors face in the market.

The letter to ban PFOF (payment for order flow) received more than 71.5k signatures.

“Together, we’re going to make sure that retail represents itself, & that firms who productize their clients can’t claim to represent them. Together, we’re going to make markets simpler, fairer & more transparent”, says Dave.

Ken Griffin’s Citadel is pushing back on the possibility of the SEC banning PFOF, along with the entire hedge fund industry.

However, other apes are taking a much different approach.

Unlike Dave Lauer, majority of retail investors don’t believe in the SEC.

They’re using marketing campaigns to put pressure on our regulators as seen below.

A mobile billboard truck was spotted in New York reading “The SEC is Complicit with Wall Street Corruption“.

Meanwhile, content creators on social media continue to educate the masses on market injustices.

Institutional investors beware, apes aren’t leaving.

Related: Here's Why Mainstream Media is Attacking AMC

AMC stock prepares for a breakthrough

AMC Entertainment Stock
AMC Entertainment Stock – Will apes trigger a short squeeze?

Buying pressure tends to slow down during bear markets, but this isn’t stopping retail investors from staying in the game.

While the ‘hodl’ game is strong, big buying pressure will soon be underway as the markets begin to shift upwards again.

Momentum from shorts closing will fuel retail’s demand for the stock, inevitably forcing a short squeeze.

And fortunately for AMC shareholders, there are plenty of short sellers in this play to send AMC’s stock price to a new all-time high.

An incredibly important part of history is being written today.

Will you be a part of it?

Leave your answer in the comment section of the blog down below.

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Bookmark: AMC Short Interest Daily Updates

SEC Charges TradeZero America for Halting ‘Meme Stocks’

SEC Charges TradeZero America
Market manipulation: SEC charges firm for deceiving customers in ‘meme stock’ halt.

BREAKING: The SEC is charging TradeZero America and co-founder with deceiving customers about ‘meme stock’ trading halts.

“The Securities Exchange Commission today charged broker-dealer TradeZero America Inc., and its co-founder Daniel Pipitone, with falsely stating to the firm’s customers that they didn’t restrict the customers’ purchases of meme stocks when in fact they did.”

The SEC does not mention in the press release which three ‘meme stocks’ customers were not allowed to buy.

I’ll link the official source below.

Let’s discuss it.

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TradeZero America deceives customers about meme stock halting

TradeZero America Meme stocks

In late January of 2021, many broker firms halted the purchase of ‘meme stocks’.

You might have heard of the Citadel and Robinhood scandal, where the two colluded to remove the ‘buy button’.

While the scandal became headlines, the transcripts available weren’t enough to charge the institutions.

The SEC released a press release today stating that TradeZero America is being charged for deceiving its customers.

The firm told its customers they did not halt the purchase of meme stocks when in fact they did.

After the halt, TradeZero and Pipitone made misleading public statements via interviews, social media, and in a press release in an effort to distinguish their company from brokers that restricted trading during that period. 

In a Reddit “Ask Me Anything,” Pipitone said, “That some trading firms are blocking these symbols is disgusting, unprecedented… Our clearing firm tried to make us block you and we refused.”

Side note: THIS STATEMENT is disgusting.

TradeZero America received a $100,000 penalty, and co-founder Pipitone received a $25,000 penalty.

Although the SEC did not mention which ‘meme stocks’ were prohibited from being purchased, GameStop and AMC have been the two biggest ‘meme stocks’.

I assume the third was Bed Bath & Beyond.

Source: SEC Press Release

Where are ‘meme stocks’ headed in 2022?

Meme stocks

AMC and GameStop continue to be heavily shorted.

While both companies have survived the pandemic and have shown a dramatic fundamental improvement, short sellers have not left.

Both these stocks have an extremely high short interest and shares on loan.

More and more retail investors are piling in these two stocks for a short squeeze play that was merely suppressed last year.

Trading was halted in both AMC and GameStop in late March of 2022.

AMC rose to $34 per share while GME stock rose to $199 per share.

This form of market manipulation continues today.

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Related: Ken Griffin Speaks Out on Retail Investors and Meme Stocks

Stocks and Crypto Are Under Attack by Banks and Hedge Funds

Stocks and Crypto

Stocks and crypto are falling.

SPY stock (S&P 500) has fallen below $400 per share and is now down more than 17% this year to date.

Bitcoin is down more than 37% this year and has fallen below $30,000 again.

Banks and hedge funds have been selling off both the stock and crypto markets as the need for liquidity rises.

Will stocks and crypto go back up again?

Let’s discuss it.

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!

Join the newsletter to become part of an activist group fighting for market transparency!

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Banks and hedge funds tank the markets

Banks and hedge funds have been responsible for essentially every market crash in history.

But nothing has truly been done about the systemic risks caused by these financial institutions.

Today we’re seeing the collapse of both stocks and crypto.

Massive selloffs in the market are providing liquidity to institutions in order to keep their losing short positions open.

On top of these fire sales, the amount of shorting has increased to hedge against losses from last year’s bull run.

Short sellers lost billions of dollars last year when the ‘meme stock’ frenzy took over Wall Street.

Today, hedge funds are liquidating the markets to keep up with increased margin requirements this new year.

But at what cost?

Investors invested in great companies are losing money not because of business fundamentals, but because of the lack of regulation in the financial system.

Crypto developers say crypto crash was coordinated

LUNA and UST developers said this week’s crash was caused by a coordinated attack from hedge funds and big banks.

It comes as no surprise since hedge funds and big banks have been colluding to short specific stocks in the market.

The fed has opened investigations looking into these serious issues.

Goldman Sachs’ dark pools are currently under investigation, Archegos founder Bill Hwang was recently arrested with 11 criminal counts, and the list goes on.

Subpoenas went out to several hedge funds and banks earlier this year – one of the hedge funds under investigation is Citadel, according to Bloomberg sources.

Word is spreading on Twitter and Reddit and BlackRock and Citadel are responsible for the massive selloffs in the crypto market too.

Deeper due diligence is being done on this matter.

Citadel or not, coordinated attacks on securities is something the government should be taking seriously.

Will stocks and crypto bounce back?

It’s difficult to look ahead when the markets are bleeding, after all you are seeing your net worth drop quicker than it took for it to reach new heights.

If you’re worried about today’s markets, you might have been introduced to a short-term way of investing.

While certain plays could be short-term trades, majority of the market tends to be a long-term speculative game.

We bet that the companies we’re investing in will do great over the span of 10 years or so and let the markets go through the ups and downs, at least in the case of the stock market.

Crypto has and will always have greater potential than it has previously seen.

And crypto heads know this.

Is this the end of the stock and crypto markets?

Absolutely not.

What we’re seeing today has happened several times over the course of both markets.

After a climb, there’s always some setback that scares investors momentarily.

But if there’s something we can always learn from historic patterns, it’s that stocks and crypto have always gone right back up and set even bigger all-time highs.

Is now the perfect time to buy?

is now the perfect time to buy stocks and crypto?
Is now the perfect time to buy stocks and crypto?

It seems both stocks and crypto are having a difficult time finding a bottom.

And trying to time it has always proven that no one can time the markets perfectly.

Searching for a good entry point could just as likely end up hurting you if the markets were to suddenly go through a reversal.

Skilled long-term investors know that when the markets are red, you buy and hold.

Because the price of securities always goes up after a dreadful period of nonstop downtrend.

The upcoming reversal will have you wishing you’d have stocked up on stocks and crypto today.

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Related: Are Institutions Preparing to Close Short Positions in AMC?

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.

franknez.com

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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

Archegos Founder Bill Hwang Has Been Arrested with 11 Criminal Counts

Bill Hwang has been arrested with 11 criminal counts
Market News: Bill Hwang has been arrested for market manipulation

Archegos founder Bill Hwang and CFO Patrick Halligan were arrested and charged with 11 criminal counts.

Federal prosecutors said Bill Hwang used Archegos as an “instrument of market manipulation and fraud.”

The hedge fund managed to inflate its portfolio from $1.5 billion to $35 billion before its collapse, causing massive losses for banks and investors.

Let’s break down everything that’s happening, together.

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Bill Hwang and Patrick Halligan arrested for market manipulation

Bill Hwang gets arrested

Before he lost it all, Bill Hwang was worth $20 billion and was known as one of the greatest traders you could have heard of.

Hwang’s $20 billion net worth was almost as liquid as a government stimulus check.

And then, in two short days, it was gone.

The sudden implosion of Hwang’s Archegos Capital Management in late March is one of the most spectacular failures in modern financial history.

No individual has lost so much money so quickly, via Bloomberg.

Bill Hwang’s wealth briefly peaked at $30 billion.

He used swaps, a type of derivative that gives an investor exposure to the gains or losses in an underlying asset without owning it directly. 

Another leverage tool hedge funds have access to, which concealed both his identity and size of his positions.

You’d think a regulatory agency would exist right?

Don’t count on the SEC.

On March 26th, investors learned that Archegos had defaulted on loans used to build a $100 billion portfolio.

Credit Suisse, one of Bill Hwang’s lenders, lost $4.7 billion.

How did Archegos manipulate the stock market?

Bill Hwang’s Archegos essentially used a ton of leverage to pump stock prices up.

As the price of stocks rose, they would buy more shares with those profits, and continue to borrow money from the bank to further pump the prices.

Archegos only held a small portfolio consisting of a few selected companies, of which whom they had many shares of.

When a few companies’ share prices began to plummet, Hwang’s entire empire crumbled almost instantaneously.

As the value of their portfolio sank, the hedge fund was forced to liquidate even more assets due to margin calls, further escalating the situation, and losses.

Archegos was forced to default, causing investors and banks billions of dollars.

Bill Hwang already had a troubled history with hedge fund Tiger Asia, who was shut down by the U.S. for insider trading and for manipulating Chinese stocks.

Still, Bloomberg vouches for Bill Hwang publishing an article he has done nothing wrong.

What was Bill Hwang charged with?

Hwang and Chief Financial Officer Patrick Halligan were charged with 11 criminal counts overall, including racketeering conspiracy, market manipulation, wire fraud and securities fraud. 

Hwang was arrested early Wednesday and was expected to appear in Manhattan federal court later in the day. 

This is a developing story.

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