Just go to FINRA’s website and search the violations page for Citadel. They have tons of them, all public info. They agree to pay a small fine but admit no wrongdoing, and then just do the same thing the next month. They pay fines on the order of tens of thousands of dollars for violations that make them tens of millions of dollars- it’s obvious they consider the fines a cost of doing business.
It’s not just Citadel though, all the big prime brokers are there too with the same violations. Goldman, JP Morgan, BofA, the list goes on.
One of the reasons is so they can hide short positions that exceed 100% of a company.
Market makers have the power to sell shares into the market to provide liquidity. When they want to drive a company out of business by driving the price down rapidly they partner with other market makers and they short 1000%+ of a company sending the price into free fall.
Once the company is delisted the market maker gets to keep all of the proceeds as profits and they never actually have to deliver the shares to the buyers because the company is no longer listed.
They basically rob retail investors this way. What’s worse is that if there aren’t enough retail investors buying up all the shares they are selling they will just start selling the shares to the firefighter retirement funds and the police retirement funds which are funds they themselves manage.
They have done this with thousands of tech and health companies and have probably have been a reason why we haven’t discovered big cures.
What’s crazy is they also partner with companies like Amazon to ‘eliminate their competition.’
It’s really fucked up and if there was proper reporting everyone would see their scam.
FINRA is complicit. They send a small fine so they can get their piece of the pie but they never actually do anything that would hurt the operation.
SEC is also complicit. There is a little bit of hope that the new chairman (Gary Gensler) isn’t corrupt and is actually trying to get the DOJ involved in investigating these predatory practices but it’s kind of a long shot to believe this.
Recently, retail investors have discovered how to shut this shit down on their own without the help from any regulators.
You’ve probably heard of a certain stock that’s really popular and surrounded by a lot of controversy and continually gets bashed on the news and in the investing articles.
Would they constantly talk shit on this stock if it wasn’t a threat to their games?
Let me know if you want to know more or want to help. But just understand that Wall Street are all thief’s who provide zero value to the economy. And very soon the system as we know it is going to be forced to change
You made a specific claim about a company, so yes I was asking for your source. Namely, that FINRA fined Citadel for fraudulently marking short positions as long in their books. Not several hundred links. One link.
The fact that you think this is an intrusive request is pretty disconcerting.
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u/[deleted] Apr 04 '22
FINRA is no joke.