Today I want to talk about how Citadel is about to be margin called and liquidated by Bank of America The FED is pressing these Banks to issue margin calls to these risky, heavily overleveraged hedge funds just like Citadel and it's about to get messy. so stay tuned and let's make some money. And before I dive in with the key information, be sure to stick around to the end for my fast moving momentum news play both yesterday and today two days in a row, we've already had 25% runners. It could be a great way to make some extra money on the side, maybe to buy more AMC shares with now I'm obviously not saying to sell any of your AMC shares, but if you do have some extra money or money on the side, it could be a great way to make even more.

And now I drive straight in with the key information. So Frank tweeted saying the US weighs leaning on banks to curb hedge fund leverage trading so it says top Us Regulators are zeroing in on dangers posed by High leveraged hedge fund trades and considering options to rein in risks to the broader Financial system. saying although hedge funds are subject to Less Direct regulatory oversight, they rely on highly regulated large Banks to finance many of their trades. so we know Citadel has Equity capital of around 40 to 50 billion but has a stock portfolio of 250 to 300 billion because they're leveraging their money on a 7:1 ratio borrowing 200 to 250 billion cash.

And it says that gives several US Agencies sway to limit the activity and in early stage plans Regulators are wearing options ranging from pushing Banks to gather more data on exposur, to pressing them to ramp up haircuts on some secured borrowing says Gary Gendler this week sounded the alarm Bells He said on Wednesday that the funding that Prime brokerages provide to some hedge funds on a very generous basis AK not issuing margin calls is the biggest source of risk in the financial system. We know Sadel should have been margin called long ago, but their Prime broker Bank of America hasn't yet liquidated them due to these very generous terms and he said if a problem happens, it's going to be the public that bears the risk of any challenges in this market. Citadel borrows their money from Bank of America if Citadel goes under, Citadel loses all of that money and Bank of America loses hundreds of billions. And if they need a bailout, who's going to fund it well, the US taxpayer and Gary Gensler has said that is far too risky, leaving these taxpayer bailouts effectively in the hands or in the rist basket of Citadel Securities Mque of Thecal has clarified saying 87.2% of Citadel's net derivative assets are held with a subsidiary of Bank of America Merl Lynch which serves as their Prime clearing and Prime broker as of December 31st, 2022.

Back in 2021, this figure of 87.2% was actually higher to 93% So largely all in all, the majority, if not all of Citadel's margin loans come directly from Bank of America. And again, let's also remember just how much Bank of America are actually struggling with unrealized losses that have just increased from quarter 2 at 105 billion to 131 billion. So BFA already has hundreds of billions in unrealized losses. and if Citadel ends up going bankrupt or being margin called and liquidated, could add hundreds more billions to that losses pile.

And that's why Gary Enela wants to stop this highly leveraged trading by these hedge funds and he wants to get these Banks like Bank of America to push on their hedge funds and say, right, enough is enough. We need to issue margin calls and liquidations. And that's also partially why they're also suing the SEC as Saint Snap said: Citadel who is just fined for fraudulently marking millions of short trades as Longs for 5 years is suing the SEC because they don't want to pay for the system that will monitor them more closely to prevent further criminal activity. Citadel And these highly leveraged hedge funds don't want more monitoring whether it's from the SEC or from these larger Banks And that's why they're happy to sue.

They don't want more monitoring because they know they're heavily overleveraged, they know they're upside down in positions, and they know they probably should have been margin called long ago. But because these deals or these loans are made on very generous bases, these Banks haven't yet issued those margin calls and so far have allowed Cel and other hedge funds to escape. And that's also why these hedge funds like Citadel are Scared of the Cat system because it tracks the life cycle of a trade. It has a customer ID a broker ID and venue IDs attach to all of the trades along with dates and time stamps.

This Cat system will not only expose just how heavily over leverage they actually are, but it'll also track every single trade and every single share they've short sold, therefore exposing those synthetic shares or how Reliant they are on that market making exemption. And speaking of these head funds and these institutions being scared of the Cat system, check out this tweet from John Berder. He's tweeted and attached the SEC investigation and charges of that known hedge fund short seller Anson funds who's just violated regulation M Now surprisingly, these charges are actually quite good as Anson funds has just been required to not just pay a small fine, but also discor every single penny of profit they made on top of the fine on top of interest. And remember, Anson Funds is also one of those hedge funds being investigated by the Department of Justice alongside Citadel, Melvin Capital and many others.

Basically, Anson Funds has just violated Rule 105 of Regulation M which basically States you cannot short sell shares of a company, but then buy shares when it makes a new share offering within a certain time period. They basically state that Antson Funds were shorting 750,000 shares of American Airlines just before their share offering back in 2020. The SEC have then said that actually pushed the price down to below $13 and during that share offering Anson Funds tried to buy 2.2 million shares that then closed out of their short position and a few days later the share price went back up whereby Anon Funds sold those additional shares, both closing out of their short and closing out of their long. The SEC has said in This One Singular occasion that generated $2.5 million in profits for Anson funds illegally and as a result, Anson Funds now has to pay back that $2.5 million of profit.

They generated $261,000 of interest and a $600,000 fine on top of that. Now, this is actually a really interesting investigation because they've basically caught this fund that was improperly Short Selling shares and then buying shares during a share issue which AMC has just done and generated illegal profits. They're not just paying a teeny tiny fine and none of those profits back, they're paying all of the profits back and a fine and interest. I would love to see an investigation into Citadel or one of those offshore shell companies that are holding tons of Shorts puts or shares or whatever it is and to how much profit Citadel at actually generated from improperly shorting AMC and then also how much profit they'd have to pay back, how much interest and how much fine on top of that I Imagine it wouldn't just be to the tune of a few million dollars, it' be to the tune of a few billion.

maybe even tens of billions, maybe more. And I also wanted to show you this great video of where Christian explaining why these hedge funds and market makers are scared of having Ftds on their book now I know it's from an interview with Matt Cuse, but it's actually back from 2021 when Matt kind of covered AMC again Matt Co doesn't say a word in this video, it's more just to listen what w Christian says because one thing you have to understand these failures to deliver are contingent liabilities on these Brokers books. They do not want that stock to go up because if it, if they lose control of that, it could break them. Okay, which is why they're scared of your group, all you all you all you Apes out there.

Okay, seriously, it's you're beating them at their own game and that really explains it. These hedge funds and these market makers and these Brokers are scared of having these Ftds and these short positions on their books as contingent liabilities because if and when AMC goes up, these contingent liabilities grow massively and these Brokers or market makers receive giant margin calls which they won't be able to meet. But let's also talk about my fast moving momentum news play of the day both for yesterday and today which was MTC which generated over 25% yesterday and over 20% today. So yesterday MTC ran up in the pre-market setting pre-market highs of $186 at the start of the market open.

It tried to break through 186 but didn't really manage it. It then tried to break through that new high at 193 but didn't really manage it again. I Said that break of $2 because it's breaking that whole number would push the stock up towards $3 and then later in the day what you know, it pushed over that $2 mark. It had a successful breakthrough all the way here to $248 over 25% gained, and again this morning it was trying to break that high of $247 and again it ran all the way to new highs of $3 another 20% What's important here as well is that it broke over that 247 area.

It sustained that break for 3 4 5 minutes giving us that confirmation and then pushed up higher. The stock may end up having another run later today over that $3 area. That whole number where the resistances, but we'll just have to see how it goes. I'm also trying to think of a better way to alert you guys other than the YouTube Community section.

so if you do have any suggestions, be sure to leave it down in the comments below. But as always guys, be sure subscribe to the channel. drop a like down below and ding that notification. Bell Cheers!.