Today I Want to talk about how an Exited our employee just exposed the massive fraud going on at Citadel Securities I Also want to explain exactly how the current banking crisis is going to impact both Citadel and the AMC squeeze as well. So stay tuned. Then let's make some money and now I'm going to dive straight in with the key information. So Investor Turf posted this article that says exposed Insider Secrets of Citadel Securities's game revealed by an ex-engineer He said, you won't believe what they're doing behind closed doors So it says here that a former engineer at Citadel Security is one of the world's leading financial institutions has come forward to reveal a manipulative trading game that insiders are playing.

It says this game could be leaving many retail investors out in the cold, and the engineer's insights have provided a peek into the opaque world of high frequency trading. This engineer himself Patrick said the game is not fair and it never has been. He said individual investors, even when operating in a swarm, are destined to lose. How do I know? Because I helped design the game and it says this.

Insider So Exited, our employee AKA one of those Engineers that I spoke about a few weeks ago has made startling allegations that the game is rigged by insiders and these insiders are Citadel are wielding their influence to manipulate the markets to their advantage. Now, the reason why I say this is important a few weeks ago is because Citadel doesn't have typical investors or typical people that graduated with, say, an economics degree. Citadel's employees don't understand Financial regulations. Hey, they probably don't even know what the Sipc or the Dtcc or the SEC or Finra evenry stand for.

Citadel Employees actually graduated with degrees in engineering or computer science and spend all day coding computer programs. They don't spend all day researching and trading stocks. they're effectively just glorified I.T Tech Guys These employees at Citadel don't actually invest in and trade stocks, they just simply debug computer programs and fix any problems going on with those is algorithms. And therefore, these employees have never really known exactly how to blow the whistle because they didn't know that what they were doing was actually illegal.

But this x, Insider or X engineer has obviously caught on and it says the revelation of this rigged game is causing a significant stir in financial circles as many retail investors are now questioning the fairness and transparency of the markets. and this is the recent Divergence of a format Engineer at Citadel Securities has exposed several malpractices carried out by the company and other high frequency trading firms that grant them an unfair upper hand in the market. and it says the post also illuminates how the firm wields its Market power to manipulate the market in its favor, creating artificial liquidity or effectively artificially suppressing the price of a specific security, thus facilitating easier execution of Trades at the desired price. And in response to the allegations.

Obviously, Citadel Securities has denied any wrongdoing and has has maintain that they have a robust risk management processes in place to ensure the Integrity of its trading activities. But obviously it's not the first time that Citadel has been accused of engaging in manipulative trading practices and finally says the whistleblowers like this Patrick guy serve as a Beacon of Hope in the murky world of high frequency trading and their courage must be celebrated and importantly, protect it now. I Really do hope that this Patrick guy has gone directly to the SEC or to Finra, or maybe to the Department of Justice or the FBI or somebody that will actually take action. You know by now that obviously the SEC does side with Citadel and therefore the SEC basically won't do anything to actually crack down on this manipulation.

But at the same time, whistleblowers do still serve a very important role and I do hope this Patrick guy has gone to the very tippy top of the structure of. what is interesting is the fact that Citadel Securities is manipulative. Advantage May soon be running out. Also, guys, be sure to join me over on moon with a sponsor of today's video.

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And therefore, right now, whoever it is, whether it's Citadel or whether it's another Market maker or hedge fund that holds these shorts basically can't get rid of them. And that's why AMC continues to stay on this threshold Securities list and actually why the numbers have failed to delivers actually continue to increase as stock since Frank tweeted, he said here's a summary of AMC's Felt delivers and he said the average number of ftds per day for February is 3.9 million ftds and we can obviously see that through 2022 and 2023, these Ftds have been going out of control, getting larger and larger every single day and every single month. I Think it's going to be really interesting to see just how many Fdds we have for the second half of February and for the first half of March as well as AMC is still on the threshold Securities list. And now the reason why this is important and why it ties in specifically to exactly what's going on right now is because of this tweet from Krista She said the former Layman Brothers CEO Richard fold ran out of times.

He tried to explain to a congressional panel the role Naked Short sellers played in Layman's collapse. She said there were reportedly more than 32 million counterfeit shares in the company sold, and in 2008 the line of questioning was on track. But it's clear that when it got to counterfeit shares, there was little understanding or knowledge by anyone on the Congressional Committee of just how big the Naked shorting problem was. Basically, Richard Foley is saying that even back in 2008, synthetic shorting was a big problem and it's part of what caused these major institutions to fail.

Therefore, it wouldn't surprise me if many of these market makers or hedge funds are again continuing to synthetically short these companies and these banks that are currently failing right now like Signature Bank Silicon Valley Bank and potentially more over the coming week, but obviously because of what's currently going on in the market with a very thin liquidity and the fact that none of these market makers want to take on a suicide position. it's very, very difficult to shift these synthetic shorts. I Mean we may have seen that actually Bank of America are also struggling. and this is also very important because Credit Suisse Works solely with Bank of America.

But let's speak about BFA first. So I Found this very interesting thread that goes through bank by bank and compares the unrealized losses to the common Equity of each Bank AKA that shareholder value or the effective Equity capital of the bank. Now, obviously, the main problem that Silicon Valley Bank had is the fact they had 15 billion dollars in unrealized losses and only 12 billion dollars in shareholder company. Equity So obviously they had even more losses or unrealized losses than they did company value.

Now we can see that actually Charles Schwab also have a very high Ratio or percentage of unrealized losses to shareholder company value. It's not quite 128 like we saw in Silicon Valley Bank, but it is 89. But actually some of these smaller banks that we're also seeing starting to experience Bank runs like First Republic Bank have a much smaller, unrealized loss to company value percentage of only 36 Six percent. Again, we've also got a signature bank which did actually go under that only had a ratio of four percent of unrealized losses to Common Equity value.

Now Bank of America However, actually have a very high ratio of unrealized losses to Common Equity with 108 billion dollars of losses to 174 billion dollars of equity, a ratio of 62. And therefore, if Bank of America are actually going through some early liquidation warning signs off the opening bail, it could be that Citadel's banking activities are done for because it says that Citadel does not clear its own Securities transactions and a substantial portion of the company's options, clearing and financial activities are with Bank of America I Think it's something like 90 or 95 of all Citadel's transactions are cleared through Bank of America and it's Bank of America does collapse goodbye Citadel And that's why I Think it's also very important to look at the total number of unrealized losses across the entire banking industry as Kim today. So there's 620 billion dollars of unrealized losses on an overall Equity value of 2.2 trillion dollars. He said if her run on the banks would happen, it would be as fatal even for several larger U.S Banks like JP Morgan, Citibank and Bank of America and Kim said this crisis isn't over the U.S treasury simply just bought some more time and that's also already being seen in Credit Suisse because Credit Suisse's Credit default swaps just hit a new all-time high you can see down here: Credit Suisse's Credit default swaps in 2008 which hit a high of 250 points obviously back in November and December that went as high I think is just above 400 points.

but right now it's already setting a new all-time high at 446 points. Just as Credit Suisse's stock is hitting a new all-time low. so it seems a bank run on Credit Suisse is still very much in the picture as a bank run on tons of other Banks Finally, what I'm hoping this ends in is some actual Bankers going to jail just like we've seen in the One MDB case. As pick tweeted, they said the former Goldman Sachs Banker Roger NG has been sentenced to 10 years in the 1mdb corruption case.

Hopefully that ends up with Ken Griffin or a number of these senior Bankers also going to jail for what's currently happening in the markets right now, you know there's tons and tons of fraud. We know many of these banks are on the edge of collapse, and it also means that many of these market makers are stuck right now and cannot pass the can. 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.

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