Banks caught short selling overstock.com

in #dreamryder0072 months ago (edited)

https://www.reddit.com/r/Superstonk/comments/n0qnz6/how_big_banks_have_been_allowed_to_manipulate_the/

http://www.rgm.com/articles/FalseProxies.pdf

How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
DD 👨‍🔬
Hello everyone reading this. If you've been reading my past DD, (all linked below in chronological order) then you'd know I've been diving deep into Steve Cohen. Today is a new day, and I am looking into something else this time. The Steven Cohen connections is done for now. I am going to be talking about the naked Short selling committed by the big banks, specifically Goldman Sachs.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
Very embarressing.

If you've read my past DD, then in this one you might recall how I mentioned Leaked emails confirming that banks were in fact naked shorting companies, specifically Overstock. Goldman Sachs was one of those banks. Source for above screenshot

I'll just quote the part where I talk about the leaked emails to save time:

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
Has to just be a clickbait headline... right?

You read that right. During a discovery period where emails were handed over to Overstock, they accidently didn't redact some important parts, namely some dirt about naked short-selling.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
not looking too good

Emails reveal that they talked about how to make certain "fails" happen. They disregarded the procedures, and told their clients that they could do the same.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
subtle

Literally just confirmed that they wanted to fail the stocks without borrowing any shares. source

So that's that. If you want to get into it more, read the original DD.

We're talking about Goldman Sachs now.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
only millions

In 2018, South Korea leveed the biggest ever fine on Goldman Sachs for naked short selling. Despite being a record, it was only $6.65 million, a fraction of what Goldman makes annually.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
reasoning

Most of the fine was for participating in naked shorting

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
reasoning

The rest of the fine was for failing to report the net balance of short selling.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
You kidding?

They were left off the hook because the naked short selling only happened on accident, apparently. They couldn't confirm that there was any intentional market manipulation. This might remind you of my final Steve Cohen DD, when I showed how he and his managers got off because they were reportedly unaware that the information they were using came from an insider. All this, and yet Goldman Sachs ended up illegally trading over 150 items. Source for above screenshots

Guess what happens when you let them off the hook...

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
repetition

It happened again... actually 3 times in total. That time they got fined 6.65 million was actually their second time getting caught. In 2015 they were only given a warning (worked out great). Less than even half a year after the fine, it happened again.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
Even less

They got caught a third time, and got a lesser punishment than their second. Only 63 thousand dollars.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
Same excuse

And just like last time, they said it was some individual's fault, rather than the company as a whole. And of course, the excuse is accepted. Source

Now obviously Goldman isn't alone in this fraudulent business.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
cooperate America

No way... The DTCC, one of the biggest aspects of the financial world, is owned by the financial instructions themselves, like Goldman Sachs, JPMorgan, and Citi? Wouldn't that give them unlimited power? Source

Lets see what the DTCC actually is before jumping to conclusions. Could just be one article making assumptions after all.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
Jesus Christ

The DTCC is in charge of exchanging $1.7 quadrillion? It actually owns all our shares? Its behind the majority of the United States' security exchanges? Well, surely something as important to the market is heavily regulated and created for the sole purpose of- wait... does that say...

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
Company....

The DTCC isn't part of the government, or even an independent department, its a private company. It's managed entirely by the big banks, hedge funds, and any other major financial institution. Source

Well now, that sure is a bummer but that other article was making it look like a conspiracy between the U.S. government and the big companies to rig the market. We should focus on the DTCC some more, and see what we find before coming to a conclusion as extreme as that.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
Oh wow

All this info, just on the Wikipedia page. The DTCC and SEC being too secretive on their knowledge of naked short selling. The DTCC using the same Goldman sachs excuse of "not my problem, just some of my clients/employees." Clearly the government is not doing enough, with all lawsuits being dismissed and no hearing on the issue being called despite being "serious enough' to warrant a hearing." Source

Now maybe going back to that article wouldn't be so bad. Seems as though they weren't just making things up for content, regardless of "conspiracy" or not.

r/Superstonk - How big banks have been allowed to manipulate the market forever by law enforcement failures Part 1 (Goldman Sachs and the DTCC)
Goddamn it

As per usual, a solution is presented but ignored. The DTCC, of course being dominated by the big banks rather than our civil servants, simply had the proposal gotten rid of. Should I even have to prove this article as having merit this time? It's directly quoting a book. Same source

That is it for now, just the beginning of a new DD series. Stay tuned, might look into another bank and their connection to DTCC next.

------------------------------------------------------------------ First 3 DD (learning to write DD)

First post explaining the Panama and Paradise papers

Second post poking fun at the financial institutions that spent years dodging taxes to save money, lose a bunch of money from the Archegos fallout

explaining how hedge funds evade taxes

------------------------------------------------------------------ How Overstock survived Naked Short selling

Overstock naked shorted like Gamestop lawsuits, blockchain, and crypto to fight back

Leaked wallstreet lawyers' emails (second half of DD, info found at the same time)

------------------------------------------------------------------ Steve Cohen Connections

Steve Cohen's connections

Steve Cohen Insider trading and media control (First half of DD, info found at the same time)

How Melvin connects Ken griffin and Steve Cohen through insider trading

Investigative Journalist Matthew Goldstein and why he could be helpful

"the biggest insider-trading scheme in history"