From e844ca33236daa329f759a1fbb84bf167d5b3c73 Mon Sep 17 00:00:00 2001 From: verymeticulous Date: Wed, 19 May 2021 08:53:28 -0400 Subject: [PATCH] Create 2021-05-18-Wes-Christian-AMA-Bullet-Points.md --- ...1-05-18-Wes-Christian-AMA-Bullet-Points.md | 188 ++++++++++++++++++ 1 file changed, 188 insertions(+) create mode 100644 AMAs/Wes-Christian-AMA/2021-05-18-Wes-Christian-AMA-Bullet-Points.md diff --git a/AMAs/Wes-Christian-AMA/2021-05-18-Wes-Christian-AMA-Bullet-Points.md b/AMAs/Wes-Christian-AMA/2021-05-18-Wes-Christian-AMA-Bullet-Points.md new file mode 100644 index 0000000..292035e --- /dev/null +++ b/AMAs/Wes-Christian-AMA/2021-05-18-Wes-Christian-AMA-Bullet-Points.md @@ -0,0 +1,188 @@ +Wes Christian AMA in Bullet Points and Full Credits to u/Helpful_Egg2364 +======================================================================== + +| Author | Source | +| :-------------: |:-------------:| +| [u/Hopai79](https://www.reddit.com/user/Hopai79/) | [Reddit](https://www.reddit.com/r/Superstonk/comments/nfnvil/wes_christian_ama_in_bullet_points_and_full/) | + +--- + +[Discussion 🦍](https://www.reddit.com/r/Superstonk/search?q=flair_name%3A%22Discussion%20%F0%9F%A6%8D%22&restrict_sr=1) + +All notes directly from [u/Helpful_Egg2364](https://www.reddit.com/u/Helpful_Egg2364/). Thank you fellow ape for allowing me to post this! Their account is not old enough to post here. + +Link to the AMA:  + +--- + +AMA: "reported SI is *garbage*" + +AMA - He believes there are 2 sets of books "like ENRON" + +1. through DTCC - audit trail + +2. ex-clearing - broker to broker outside the SEC + +Everything is Fake News in the financial sector - the system is rigged + +- From AMA - horses mouth -AMA: Bona Fide Market Makers - They have no actual affirmative obligations - just the privileges (from what I understand) + +AMA: Bona Fide Market Makers and Prime Brokers are center stage in the rigging of the system + +- He speculates that this began in late 90's early 00's when DTCC purchased the NSEC (loan stock). + +- Proprietary trading became the main business of prime brokers as opposed to IPO's and wealth management + +- Proprietary trading in stock lending is really just "driving the company into the ground" as a business model- We're finding that we are rarely wrong about our assessment of the system. We may be wrong about specific moves and dates but rarely about how it all comes together.--- + +- Confirming that the DTC is a self regulating body which was a good idea turned into a monster due to lack of enforcement. Electronic delivery is environment ripe for fraud. + +- Require that stocks be delivered: This is lying, cheating, and stealing! + +- He has never gone to trial on these cases because they typically settle to avoid airing dirty laundry. + +- No lending shares more than once! + +- Creating artificial supply undermines the entire mechanism of the stock market + +- He has helped clients fight for a year to get their 10's of millions of shares. + +- They are working on tools to identify when you are being delivered actual shares or counterfeit shares + +AMA: + +This is the same thing as a car owner xeroxing their car title and selling the same title 100 times. In that case they would be in jail but this is the *Cabal* + +DL: "too big to jail" + +AMA: they are preparing a major bench case! + +- He is doing this for the principle + +- Takes a gargantuan effort - "GOTTA BE STRONG AS APES" + +- He likes us calling ourselves apes + +AMA: Good lawyers representing crooks. + +-"do we want to be on the side of right or the side of wrong." To be on the side of truth "or those who lie cheat and steal" + +- Their team (which notably includes DAVE) is tackling this hardcore!! + +AMA: + +DL: This is pretty much the first time this has gotten attention "AT THE TIME" of the short selling. The popular uprising is instrumental in making a difference in breaking this cabal's influence on the market + +WC: "I think this has the best chance of being successful." Referring to GME breaking the power of this cabal + +WC has successfully tackled stock manipulators, working with DOJ, FBI, etc. But the punishments for many of these cases are slaps on the wrists relatively speaking. + +AMA: + +WC: It will take massive amounts of people to show the bullies HF + Prime brokers proprietary trading desks (make money by you buying, shorting against you, and lending your stock!). + +- The "investing public" can share information and fight this behavior. + +- Use cash accounts, monitor that they are not being lent, keep an eye on what your pension funds do, and other changes of behaviors. + +- This behavior by Prime Brokers and HF is not right, illegal, and impacts the bottom line of all investors. + +AMA: Synthetic Shares and Failures : MECHANISMS + +WC: + +- only answers using publicly available shares + +- they have been called rehypothecation, reverse conversions, etc. But he calls them popeye and whippy principle (give me the share and I will pay you next wednesday... which never comes) + +- Results in dissemination of false info. Which they (proprietary trading desk) can show to their internal compliance office, who can show the regulators, + +- Naked short seller asks another broker who will sell him some shares which are marked long but are actually SHORT + +- Just strategies to buy them time so the compliance and regulators off their backs. + +- Naked shorting is essentially a Futures contract to do something in some form of shares which NEVER GETS consummated + +AMA: + +- I missed a bit to let my dog out. + +- many of the trading platforms are just servers in a data centers (in NJ) making it easier to lie and harder to regulate + +AMA: + +WC: has seen firms using Large ITM options trading hands as a means to spoof the market + +- A lot of favors between brokerages. They will sell each other options contracts which will last 90 days and then 2 days before will tear it up + +- [u/Itz_Ape](https://www.reddit.com/u/Itz_Ape/) *explanation:* A option seller can "neutralize" a sold option via buying it back. It looks like when time to "neutralize" sold options comes, they ask for a new option. Rinse and repeat. + +- fails sometimes exist for years + +- The mission of the bad people is to drive the price down so they can keep the cash + +AMA: + +To be certified as a "class" for a class action suit, you have to be "in the same ball game with the same bat" all damaged in the same way. + +Roundup example: All people were injured by the same company but were not a class because they were not injured in the same way (however changing because they are seeing that it leads to cancer (same damage)) + +AMA: Discovery process (GETTING INFO) + +- Most cases have protective orders, so only parties (sometimes only the lawyers) can see them + +- sometimes they get published by SEC or the parties on accident. + +- They have ways to check public information with cross-sections of data but this often requires cooperation with the issuer + +- Issuer contracts with DTC for certain services , such as a daily Position report to the issuer + +- Daily position report will let you compare how the debits and credits are happening in comparison with what is happening in the market place + +- Best way is for Issuer to contract with 3rd-party entity to "stock-track" + +AMA: Synthetic Shares voting over 100% + +- WC has seen this many times in many companies - SOMETIMES OVER 200% + +- over half of the 60-70 companies he has worked with + +- THIS DOESNT EVEN TAKE INTO ACCOUNT THE PEOPLE WHO DON'T VOTE AND THE PARTIES ENGAGED IN THE NAKED SHORTING + +- he has brought this up to legislators and bureaucrats and they talk big but do nothing. + +AMA: Impact of Synthetic shares + +- Impairs corporate governance // company unable to carry out their basic functions + +AMA: GME RECOURSE FOR OVER 100% SHARES + +- GME CAN SUE the parties (Direct Claims) + +- Shareholders can sue the parties (Derivative claims) + +- Corporation owes fiduciary duty to shareholders, NOT SUING CAN BE A BREACH OF FIDUCIARY DUTY BY CORP. + +- CORPS WHICH DO NOT SUE OFTEN TEND TO GO TO $0 + +AMA: CAN SHORTS OFFLOAD THEIR SHORT POSITIONS ONTO NON-DTCC PARTIES? + +- No answer + +AMA: + +- Dilution is a damage -is compensable to various extents. + +----- + +How helpful are Judges/DTCC when it comes to discovery? + +WC: You are dealing with PEOPLE. Generally: Harder to get discovery from judges in NY. State Judges take more interest in it, Federal judges less. + +- KEY: be extremely precise with your motions to compel (discovery motion) explain why each document you are requesting is relevant to the trial. + +AMA: + +WC has been in the cause for 20 years. And he will be part of this until it is resolved or he dies. This cause is extremely important -- has the country and global economy at risk. + +He is open to do a part 2.