ROARING KITTY GME STOCK AMC STOCK “CIATDEL DOUBLED DOWN”

hedge funds that are taking on loan books from Banks and uh that's exactly another extension of just Banks offloading to the non-banks in a bigger and bigger way well guys we do have some updates from Bloomberg on Citadel taking over the banks Citadel Securities the market making business will not only trade stocks on behalf of bank's clients but they might actually take over the synthetic risk transfer which means all the potential bet loans that the bank gave away they are going to shift this loans towards the counterparty which will be cadal Securities right and Cal Securities will take on the risk of these loans means everyone who borrow money from the bank and this is most likely less credit worthy they're going to be transferred from the books of the banks to the books of Citadel inside Ken Griffin Citadel Securities a strategy for handing even more of wall Street's trading over to the market maker that strategy is starting to take shape it's a nent strategy which would have firms deal uh with clients here Citadel security would be dealing with banking clients while Citadel Securities handles the behindth scenes mechanics it's fascinating guys because this is a year in which they're already on track to hit halfe profits according to Bloomberg's reporting and remember this is an extension of what we've seen Bank trading desks weakening under Capital rules it ties into the broader story and Ken Griffin really coming out on top here yeah really timely Story I mean just to oversimplify it it sounds like this is basically white label trading that they're doing right it is and it's interesting it reminds me a lot of what other firms like jeffes and Co have been doing because they have been Outsourcing trading to other investment Banks while the biggest of banks have uh more and more constraints and instead turning to things like Prime brokerage lending to hedge fund clients instead using those balance sheets when it works but is just another story of these big Banks losing business to upstar competitors right you know this is not quite the same but you think about just these like synthetic risk transfers that are happening hedge funds that are taking on loan books from Banks and uh that's exactly another extension of just Banks offloading to the non-banks in a bigger and bigger way it's a great question really and I mean I think that's everyone's worst nightmare right that when you think about the black swans that are still out there do we have something like that hiding in plain sight is there another $ 36 billion family office that is just being a little bit too risky yeah I guess it was interesting to see I mean the testimony was amazing right and to see the relationships between um these Traders and their Prime brokerage they were so chummy that uh there was just too much trust and that's what made it happen and some things in the market have changed of course credit s is no longer really in this market but some things really haven't changed they tried to really change up swaps rules they tried to change up family office rules none of that happened at the end of the day so time I guess we'll tell and there I mean there's some great details a lot of Tik Tok that has been in the reporting around this case I thought this was interesting from the jury we were talking yesterday about how the judge was saying that both sides were boring the jury but one of the jurors who asked to remain unnamed he said that he was on the fence during most of the trial because he worked on Wall Street for more than three decades but he said that Wong in the end condemned himself because he was trading on such a large scale and had that manipulative impact on stocks can I just which as you may have guessed will bring much more risk on the table remember this is counterintuitive who will be taking over a bad loans well on the finance World these are actually sometimes paying back very well because the bank will be paying yield they will paying fees to the third party in this case will be Cale not to mention there is also a potential opportunity foro to make the money between the credit spreads between the previous amount and and value of the loan and the future amount and value of the loan but it is very important right now that you might actually see the same counterparties borrowing from the same bank trading the same stocks and essentially lending money on their own this is a white labeling guys this is like a Drop Shipping right you order a product from China and you order a special branding around the product so the product will look like it's your product essentially the same banks will be executing orders but they're not going to execute the orders by themselves they're going to be see they executing the orders on their behalf and everything will look amazing and absolutely uh you know perfect on the surface so let's just simplify the situation all the retail orders of individual investors are currently coming from payment for order flow through all the broker apps that are using and most likely are going through either C Securities or V Financial right this is or right this is the most obvious situation now all the institutional orders are either going to the private dark pools which are held by Morgan Stanley or other investment Banks or directly going through the dark pools of big market makers such as cadel right just think about it so if before the institutional clients have two stops they either going to go to the investment firms investment Banks to get their order executed or they going to go through the uh private Market making firms which are over here and now we're seeing the C will be able to take over not only on the general client on the market but they're taking a market share or they're about to take a market share from the direct competitor which is the investment Banks this why I made a joke yesterday that King griffy will become the richest person in the world in the near future and I honestly believe it because you know for these guys it's a zero it's a zero risk uh business right essentially trading or you know maintaining a trading system it's like running a casino right it's very hard to lose running a casino it's very hard to lose you know operating or maintaining a huge trading operations where you have system in place where you have a guaranteed order flow you have guaranteed amount of Trades coming every single minute every single day and essentially you have nothing to worry about you have people that are you know willing to work K G said there's over 100,000 applications for people to have internship with a company where they only looking for 2,000 there is a lot of people try to join the team you have tons of money to implement the new AI system machine learning I have a second video for later where he actually confirmed how they using AI to trade and how to using machine learning to predict future uh Market perspective okay be very close pay 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