Welcome back to the channel everyone today, i want to talk about how citibank holds 510 million shares of amc all on their own. That must mean that surely there's at least one billion shares of amc out there at the moment when you include citibank's 510 million, our retail investor 80, plus of the float and all of the institutions and etf holdings as well so stay tuned. And let's make some money, but before i dive into the video, i just want to give a massive shout out to everybody. That's currently part of the team on the private discord which is linked down in the description below there.

They get urgent news due diligence and updates on amc before i even make a video and other stocks and cryptocurrency as well, and they can ask me any question they like whenever they want, and just a quick one before i dive in with the key information. Also be sure to check out those links down in the description below to get those free shares with moomoo and with free trade and to pick yourself up some merch, and now i want to dive straight in with the key information. So, firstly, i want to give a massive shout out to jimmy amc for getting the ball rolling with the brazilian depository receipts research. I reviewed his research and his calls with members at citibank, and then i decided to do a bit of my own research and built on his work a bit as well.

So jimmy tweeted saying i have two recorded phone calls from citibank department heads that deal with dr's or depository receipts and custodial services confirms that by law rules and regulations, the 3.08 billion a2 mc34 bdrs a six to one conversion ratio equals 510 million amc shares being Held by them right now, we'll upload on youtube soon, so you might remember that this dates back to the other week when we saw that there were three billion bdr shares of a2 mc34 in brazil. Now, obviously, there was a lot of malarkey going on with the exchange rates at the time and it took us a little while, but we managed to figure out the 3 billion bdrs converts down to 510 million amc shares because of the six to one conversion ratio. But what we didn't figure out at the time is that these 510 million shares are actually real and actually exist and citibank actually has to hold all of these shares enabled to issue those bdr receipts in the first place. So i guess firstly, let's talk about what a depository receipt actually is, so a depository receipt or dr is a negotiable certificate issued by a bank representing shares in a foreign company traded on a local stock exchange.

So in this instance it's the representation of amc shares. Being traded on the brazilian stock exchange, the depository receipt gives investors the opportunity to hold shares in the equity of foreign countries and gives them an alternative to trading on an international market. A depository receipt, which was originally a physical certificate, allows investors to hold shares in the equity of other countries, so i found this very important handbook put together by pwc, which is the largest firm of accountants in the entire world. The handbook is called how to launch a brazilian depository receipts bdr program, so pwc say that a brazilian depository receipt or bdr is a negotiable instrument.

That represents an ownership interest in the securities of a non-brazilian publicly traded company, which must be backed by its own securities. Listed in its home or other markets, bdrs are receipts issued by brazilian depository institution representing securities issued by a foreign domiciled company which have been deposited with a foreign custodian bank or institution. The securities underlying the bdrs must be deposited with institutions that are in countries which have signed agreements with the brazilian securities commission, or have signed a memorandum of understanding with the international organization of securities commissions. So, basically, there's two different types and classes of bdrs.

You've got unsponsored, bdrs and sponsored bdrs. You've also got level 1 level 2 and level 3 as well. So i'm going to start only by explaining the level 1 unsponsored bdrs a because there's only one level of unsponsored bdrs level. Two and three are only for sponsored bdrs and you'll, see why but unsponsored bdrs are the ones that we want.

So an unsupported program can be launched without the support of the underlying company and the securities are traded on the bm and fbov espa. The depository institutions that issue level 1 bdrs are responsible for disclosing information to the market. Although the program is registered with the cbm. The foreign issuers of shares, represented by level 1 unsponsored bdrs, are not required to register the company with the cvm and proceeds cannot be raised in brazil through an issuance of securities, and only qualified investors are permitted to trade, unsponsored level, 1 bdrs, so basically a level One unsponsored bdr can be done without the support of amc, but because it's done without the support of amc, there's no issuing of additional securities and therefore proceeds cannot be raised in brazil through an issuance of securities and a really interesting point.

I want to pick out that i'm going to touch on later is that only qualified investors are permitted to trade. These unsponsored bdrs i'll give you the definition for qualified investors later, but basically it means that regular apes, like you and i can't get our hands on these bdrs. So i guess firstly, let's go on a smidge of a tangent and have a look at. Why we're only looking at those unsponsored bdrs? Well, jimmy amc did the hard work for me and sent an email directly to john merriweather, the vice president of investor relations at amc, john replied, saying hi jimmy thanks for your email.

Amc has not issued any additional shares and we have not listed any stock on any foreign exchanges. The number of issued and outstanding shares of amc class a common stock still remains at 513 million shares. It appears that a brazilian stock exchange has added the ability for brazilian investors to trade unsponsored brazilian depository receipts. Under the symbol.

A2Mc a2mc34 bdrs are certificates representing shares in foreign companies traded in brazil. The shares of the foreign company in this case amc are already legally issued, outstanding and currently trading in the us and are blocked in the account of the program's custodian institution. The bdrs are unsponsored by amc and we have no involvement in the listing of the bdrs and he then touched on the difference between that forex rate, and he said it's simply a conversion rate calculation. Six amc bdrs is equal to one share of amc and he said they've chosen to report the conversion on the shares themselves, rather than the foreign exchange rate of usd to the brazilian real or brl pwc have a very handy table of the key players in a Brazilian depository receipt: firstly, you have the depository bank, the coordinator of the launch and maintenance of the bdr program and, as jimmy touches on banco b3 in brazil, are effectively that depository bank.

You then have the custodian bank who's responsible for custody of the equities underlying the bdrs and, as jimmy touches on that here is citibank. In this instance, there's then also an audit firm, the cvm, an investment bank and the bm and fbov espa. So obviously the bm and fbov espa is the stock exchange. The cvm is the capital markets regulator.

An audit firm is just any audit firm to all its companies and the investment bank is the lead manager of the public offering of the bdrs. So the depository bank will issue in brazil, the corresponding certificates or receipts based on the securities held in custody abroad and is responsible for the filings with the cvm for the purpose of registering the bdr program. So you can see why it makes sense. That's banco b3.

Currently in brazil, and obviously the custodian bank holds the shares which back the bdrs in the home or other country where such shares are traded now. The key part here is the legal definition or the legal requirements of a custodian bank. A custodian bank is typically responsible for settlement safekeeping and reporting of their clients, marketable assets and cash regulation requires them to hold client assets in separate accounts, segregating them from their own and therefore limiting risk to investors. Therefore, on citibank's 13f, they only have to report that amc shares that they hold themselves for their own investment purpose, because the bdrs are separate and they technically aren't held by citibank for citibank's investment they're, just acting as a custodian holding those assets.

On behalf of other investors, being those investors in brazil now, as jimmy found out, citibank, currently have 23.7 trillion dollars in assets under custody and administration, and a global custody network spanning more than 100 markets worldwide and city is one of the largest custodians in the world And jimmy also tweeted saying that 510 million shares the citibank owned is really just a tiny fraction of shares. They hold in custody for depositories around the world. Obviously citibank controlled 23.7 trillion in securities in their vaults, but they aren't even the biggest bank of new york. Mellon is but many, and if not all, of the big banking institutions provide this service as well.

Therefore, imagine citibank having 510 million shares of amc bank of new york, mellon, potentially having some as well, and then you've got jp morgan and all of the other banks that also offer this service as well. That could also be holding amc, shares or amc bdrs or different countries, depository receipts. You can very quickly and very easily imagine just how there's billions and billions of synthetics out there in the market right at this very moment now earlier, i said that level. One unsupported bdrs could only be bought by qualified investors so who qualifies as a qualified investor.

A qualified investor is a financial institution, an investment fund, a portfolio manager and securities consultant authorised by the cvm in relation to their own resources. Employees of the sponsoring company or another company of the same group closed private pension entities and individuals or entities with investments over one million dollars in brazilian real and therefore, basically, these bdrs can't be touched by us, apes and us retail investors because we don't fall under The definition of a financial institution or an investment fund, or a portfolio manager or an employee of the sponsoring company or a closed private pension entity. Now maybe some of us meet this definition of individuals or entities with investments over one million dollars in brazilian real. But i also wonder if you actually have to physically hold investments in the brazilian real currency in brazilian stocks, in which case i imagine, most of us probably wouldn't mean that either - and this is how citibank and these hedges are so so sneaky they've managed to sneak Around once again and just basically buy up and hold 510 million shares, so they can trade them overseas and offshore, where we can't get our hands on them.

This could potentially be how they're continuing to drop the price of amc as they can legally trade. These bdrs back and forth and ladder attack these bdrs and it impacts on the amc stock, because, obviously it is technical, real shares that are being held by citibank, even though these shares are obviously synthetics because there's so many of them they're getting away with it. Because it's technically legal bdrs and obviously the regulators like the sec and the cftc and the dtcc, haven't yet made that connection that us apes have just made that, even though apes own over 80 of the float well clearly, citibank also owns over 80 percent of the Float themselves because they've created these bdrs and they're holding actual amc stock in relation to these bdrs now jimmy also spent a lot of time speaking to two very important people at citibank, trying to get them to confirm that citibank do hold 510 million amc shares themselves. Now, obviously, these two important people at citibank do spend a long portion of time trying to skirt around his questions and not physically verify or confirm with words that citibank is actually holding 510 million shares.

But jimmy thinks there's enough confirmation in there that he can go to the sec and the fbi with the information. Now, if you haven't already i'd, also say it's worth giving a listen to these calls that jimmy has uploaded to youtube i'll leave the links down in the description below to those calls, as well as leaving a link to jimmy's, twitter and jimmy's twitter threads. But basically, jimmy spent a long time on the phone to michael moore, a director at citibank and also to christian glenn. The vice president of city, head of depository receipts operations, and obviously, as i also pointed out earlier, regulation, does require citibank to hold client assets in separate accounts, segregating them from their own and therefore limiting risk to investors.

And therefore, the regulation does actually require citibank to buy and hold 510 million. Amc shares guys be sure to. Let me know down in the comments below what you think about there being actual proof to citibank holding 500 million shares of amc. On top of the shares that all of us, apes and retail investors actually own and if you haven't already be sure to check out those links down in the description below to get those free shares with moomoo and free trade, to check out the merch and to Become part of the team on the private discord and as always guys if you enjoyed this video, be sure to check out some of my others.

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