Today I Want to talk about how tedium Ameritrade and Thomas Pitt be our likely insolvent right now and are panicking massively I Also want to explain how this is going to lead to massive Force liquidations that will cause the ampsy squeeze. so stay tuned and let's make some money and now dive straight in with the key information. So Travis tweet saying Charles Schwab is in trouble and if they go bus so will TD Ameritrade since they merged and then you will start to see what happened to all of our Ftds. once these Brokers go under and get exposed.

now you may be saying hang on a second. Tom How exactly is Charles Schwab in trouble And how exactly did Charles Schwab and TD Ameritrade actually linked together? Well, you can see here a list of subsidiaries for the Charles Schwab group. You obviously got Charles Schwab Bank Charles Schwab Investment Management, but you've also got TD Ameritrade and TD Ameritrade Media Productions Back on October 6th of 2020, the Charles Schwab group actually acquired TD Ameritrade. So therefore, even though Thomas Petty fear is the chairman of TD Ameritrade, he's actually owned by the Charles Schwab Corporation.

Now you may not know, but Charles Schwab actually have a massive amount of unrealized losses in their health to maturity portfolio and those losses almost exceed the total tangible common Equity Of the entire Charles Schwab group, they've got 15.5 billion dollars in unrealized losses and the total company value is only 17.4 billion. Therefore, their total unrealized losses just in their held to maturity portion of their portfolio almost exceeds the total company value. And obviously, when you factor in the total unrealized losses, also, when they're available for sale Securities We can see that actually they're currently sitting on more unrealized losses than the total value of the bank. What I think would be very interesting to see is the amount of unrealized losses that Citadel Securities actually have on their balance sheet.

Obviously, as Citadel Securities isn't a bank, they don't have to disclose the gross unrealized gains or unrealized losses. It's likely that our securities does have massive, unrealized bosses on their private Equity Investments They've likely got tons of unrealized losses on their long and short positions too, and likely also have unrealized losses on any mortgages or treasury Securities that they are also holding. We can also see similar to those other smaller Banks the Charles Schwab stock has been absolutely destroyed over the last few days. Even though it has bounced up a bit today, it's still falling during the current day's trading, and therefore there's potentially also a run on the Charles Schwab Bank just like there is in many other smaller Banks like First Republic Western Alliance and many others like Silicon Valley Bank that has already collapsed.

You may remember, we saw an interview with Thomas Petty the other week where Thomas Petty looked very, very stressed and very unhappy. It's likely Thomas Petty is worrying about the current Charles Schwab situation and the fact that if Charles Schwab is shut down, so will TD Ameritrade. And obviously, if that happens, all of those Ftds that TD Ameritrade and Charles shall beholding of AMC will likely be exposed, opposed, and uncovered. And that is why, As Crystal Ball tweeted, he said the Goldman Sachs Algos are in overdrive.

Once again, he said they're trying to pin down AMC because they know that Force buy-ins AK mandatory liquidations could occur with the bank runs going on right now, not just in Silvergate, Silicon Valley Bank, and in Signature Bank, but also likely in Charles Schwab and in TD Ameritrade as well. And obviously, if it causes some massive Liquidations in Charles Schwab and TD Ameritrading caused all of those synthetic aims he shares to be rebought. It could potentially or would definitely end up causing the squeeze, and he said if there's a big enough surge in the AMC bid price, then it will overwhelm them. Obviously, if the price of AMC is going up while they're experiencing a bank run, it could definitely lead to a massive liquidation.

But on top of that, it's not just Charles Schwab on TD Ameritrade that are in trouble right now. it's also Credit Suisse Guys, if you haven't already, be sure to sign out to MooMoo the sponsor of today's video. using the link in the description below, you can currently get up to 7 19 free shares entirely, commission free trading Free level 2, Market data and most importantly of all, MooMoo is very easy to use. They've got tons of technical indicators and advanced charting tools.

and with Moomi they've also got free 24 7 customer support and you can also trade around the clock with their full extended trading hours. Gavin Tweeted yesterday saying that Credit Suisse is credit default swaps just hit a new all-time high, but I'm here today to tell you that they've also set a new all-time high Once again, just 24 hours later yesterday, Credit Suisse is credit default swap set a new high. They blew through this 400 area, setting a new high at 476 points, but today this morning they've broken through that high increasing buying extra 95 basis points up to 571 points and therefore it's Nick Tweeted He said if you had Credit Suisse as next in line to go bankrupt, you might actually be correct as Credit Suisse have also discovered a material weakness in its reporting process over the past two years now. I Don't think it's being uncovered exactly what material weakness they had in their reporting process, whether it's to do with their going concern aka the continuity of the Credit Suisse business or whether it's just some specific taxation figures.

Maybe by the way, it caused the Credit Suisse credit default spread to widen by an extra 100 basis points in under 24 hours. The article says the Credit Suisse group said it had identified a material weakness in its reporting procedures for the financial years 2022 and 2021 and is adopting a remediation plan and this is for those two years the group's internal control over financial reporting was not effective. It says the material weakness identified related to the failure to design and maintain effective risk Assessments in its financial statements. Therefore, credit Suite has not been effectively assessing risk and could be in even more trouble than you and I think they are.

And speaking of material weaknesses or material risks as Ignatius tweeted, he said am I the only one thinking that this is a material risk worth mentioning in the audit report. He said, in my opinion, a for sale of Securities owned to respond to a forced buy-in of security sold and not yet purchased will destroy the company of Citadel. Obviously, with these runs on smaller banks, these banks are going to have to be selling off their Securities owned to return the money to depositors that want to move backs. That's obviously going to create more unrealized losses for other Banks and other institutions like Citadel that may also be forced to sell off their Securities owned and close out of their security sold and not yet purchased positions which obviously as we all know are synthetic shorts and also IU's given to people that wanted to buy at AMC shares that Citadel could not fight and that is why Morgan Staney have said sell any bounce on this government intervention because the next leg of the bear Market has begun.

We could potentially be seeing Charles Schwab and even Credit Suisse collapsing over the next few days. Seeing that banking contagion spread, we know the FED has said there likely is going to be more contagion, but I was expecting it to be in smaller Banks like First Republic or Western Alliance and not in giant banking corporations like Charles Schwab and Credit Suisse I think Overall, this is all happening at a very interesting time because the FED is currently stuck between a rock and a hard place. Obviously, the FED needs to continue hiking interest rates to bring down inflation. Inflation is not at the Fed's two percent Target it's still sitting around six percent and obviously If the Fed stops hiking.

then inflation will stop coming down. and obviously If the Fed pauses or even Cuts rates. it's likely inflation will continue to go back up again. But obviously If the Fed does continue hiking.

It's likely going to break these Bank even more and begin breaking even more. Banks It's all of a sudden not just going to be breaking these smaller Banks where these customers are happy to withdraw their money in an urgency, but could also end up breaking the entire banking model because obviously banking only works if they can receive money from depositors and only pay out a tiny interest expenditure of say, 0.1 percent and they can then use that money to generate a larger return on say, treasuries or fixed mortgages. Let's say, one or two percent. But all of a sudden if they're only receiving one or two percent on those fixed 30-year mortgages, but they're having to pay out four percent, five percent, six percent, seven or even ten percent interest to depositors.

It breaks the banking model. but guys, be sure to let me know what you think down in the comments below. And as always, guys, be sure to ding that notification Bell because that way you'll be alerted when I Upload a new video Cheers!.