Big things are happening on the $GME and $AMC trend and let me tell you that it is far from being over.
The SEC (Securities and Exchange Commission) is starting criminal investigations behind closed doors and this could mean Jail time for the Hedge Funds.
They can be accused of violating any provision of the federal securities laws, or the rules and regulations thereunder, or any other statute or rule a violation of which is punishable as a crime and the SEC will have the tools to perform a criminal investigation and send people to jail.
“A player in the game may be about to get pinched”
Also, the NSCC is tightening its rules and wording to afford absolutely no confusion that should a broker or member cause a fat loss, it will incentivise the sharks to eat the other stars to survive, and if not, will scalp every member for all they are worth.
Every two years the, the DTCC has to update the R&W (Representations and Warranties) procedure and its currently due, but it was stated that it WILL take into account current market conditions.
*An R&W policy will protect the Buyer form financial loss in the case of any breach of the Seller’s representations in the sales agreement. Instead of a legal battle to recover lost funds, a third party – the insurer – pays the claim.
So.. what does this all mean?
It means that this time (unlike 2008) we could see some Wall Street CEO’s face jail, especially everyone involved with Melvin Capital and Citadel, and it won’t be pretty.
This is yet another catalyst for a huge short squeeze of $GME and $AMC.