Quoted By:
(QRD 3/3)
Hedge fund called Archegos created a Short-short equity swap basket containing GME with multiple industry counterparties before 2021. Overleveraged to the tits. GME price spiked and they went bankrupt on maintenance fees alone. Investigations were made, Bill Hwang is now serving life in prison.
Credit Suisse adopts Archegos assets and Liabilities. A year later, Credit Suisse is bankrupt. UBS adopts Credit Suisse's assets and liabilities, immediately cries misrep of liabilities and asks the U.S. and Swiss governments if they can cancel the deal. UBS are declined and are stuck with the bags. More investigations occur and Interpol get involved.
Swaps maturing on the 19th were created around the same period of the GME sneeze in Q1 2021
UBS is now about to go into seating this week/next week for a government bailout of its liabilities.
On top of that, you have Citadel Securities (As some salt in the wound, owner Kenneth Cordelle Griffin was implicated in a sex trafficking case), market maker for GME, heavily printing synthetic naked shorts of GME, artificially bloating the float. This is indicated by billions on Citadel's books as revenue from "Securities sold but not bought". Retail and family offices went into a buying spree, aquiring the additional "fake" shares in Q1 2021 as indicated by SEC reports. Come the 19th and chicanery doesn't lead to a can kick (somehow), a (3 , 3) stag hunt could occur when multiple floats have to be re-purchased at market to close the Archegos shorts and Citadel's synthetic naked shorts, if no-one sells in hopes of optimal price, this leads to a short squeeze that may never end.
Let us now discuss the political rammifications of this scenario in an orderly and polite manner.
