Hey guys,
Weekend I know so I don’t expect a ton of eyes on this but this needs to get out to the 100k bots we have so they can tell their bosses we know about the shit situation they created.
I am relatively certain and have a bunch of data to provide about how little oversight the sec lending has and how it is going to create another financial crisis. Don’t worry, I think we are getting our tendies – inflation or not.
Basically, the GMSLA (internationally) and the MSLA (American) are open ended agreements that have absolutely no bearing on market delivery times other than what the two parties have agreed upon.
I think we have all come to an understanding that the banks, fed, markets, etc. are kicking the can to keep the price of GME suppressed. I think I just figured out how they’re doing it. And they really weren’t expecting apes to net all the shares themselves and not sell. Fucking dummies.
They are basically having a sue fest legal orgy in the background trying to figure out if they still own their shares, can return collateral, dissolve the agreement, basically get their shares back from the custodial bank without defaulting a member and causing more ripples through their other assets.
This has become such a big number on peoples balance sheets that they reallyyy want to keep lending securities to allow market makers to do whatever the fuck they want in the market as long as it benefits them. The only problem is, there is really no oversight on this business line.
Can anyone find any? A database, a regulatory body (not just a legal body like ISLA), something that gives the public an idea of where/what the shares are being lent out for?
Because as the bottom corner of Fig 2 states, “Borrowers borrow securities for a wide range of reasons.” Timely Settlement”.
They are using these lending agreements to settle FTDs that get reported to the SEC daily. Hahahahah. Fuck this is why we aren’t seeing bigger FTD numbers.
You would think that when Apes continue to buy shares, they would be running out to borrow/loan. But here is another little ponzi scheme, where depending on your broker, your shares are just being lent out constantly.
I have a feeling this is why our europoor friends can’t vote. Here’s some fun legal wordings from the GMSLA agreement that proves this:
Hahahaha this is exactly why HL, 212 and the rest won’t let you guys vote. They are lending your shares that are on their books, back to the banks that are trying to reset FTDs. Sorry guys, I don’t have a way around this without creating our own global brokerage arm to secure our shares. Maybe GME should create one. Hehehehehe. Seriously GME if you’re reading this call me I would love to help.
Anyway, if anyone wants to actually read these lending agreements they’re here:
My favorite is the FTD section. Loan can just be continued. Or terminated and then you have to serve notice about failure and it goes into a longggg legal process where they keep the collateral, and it seems you may not even get the shares back to begin with, just have a Letter of Credit until such a time that you can deliver. Well. That is interesting. You’re not even going to have to deliver. One day maybe. If a bunch of gamers decide they don’t want to see what happens to the system if they don’t sell.
It definitely creates a bit more of a nightmare when apes have a bunch of shares locked in their brokerage accounts, with $250k+ insurance premiums if you have a “glitch” happen where you sell their shares out from under them. Or if a bunch of people you borrowed shares from want them back and serve you with Letters of Credit until you’re drowning in legal fees and owe your entire company.
There was an interesting study done on credit swaps and sec lending by the FSB. And how this is what caused AIGs almost bankruptcy in 2008. I would definitely go have a look if you’re interested.
This is legit about how they could collect the data. And yet here we are. Even ISLA has an allstar banker retard board, with a bunch of law firms listed if you need help consulting.
Cheers everyone – happy weekend.
- https://www.islaemea.org/
- https://moass.info/wp-content/uploads/2021/05/GMSLA_2010_amendments_July_2012-1.pdf
- https://www.eseclending.com/
- https://moass.info/wp-content/uploads/2021/05/sr529.pdf
- https://moass.info/wp-content/uploads/2021/05/FSB-Standards-for-Global-Securities-Financing-Data-Collection.pdf
- https://moass.info/wp-content/uploads/2021/05/ISLA_Institutional_Investor_Guide_to_Securities_Lending.pdf