Evaluating the fallout from the Archegos margin call

[@kiwoongpk91]

Oh my gosh, signs of intelligence at CNBC!? This was a great segment, please do more in depth talks like this one!

[@TepidJean]

it is a trick to appear useful

[@donnab6995]

FINALLY. The truth of what actually goes on. Swaps are legalized ways to not disclose positions. The guest, Kate Kelly, was truthful. Thank you.

[@AM-db2dh]

The crazy thing is they tried to say wallstreet bets comes together to discuss trades. smh eveything is a lie so they can continue to change the rules of the game to make sure they win.

[@learn2237]

Korean

[@bboymonk3y]

@Tee it only illegal because it's not the criminals running the hedge funds doing it.

[@pay-o-matteo]

@@viadiablo that's why everyone holding deep in the money contracts,they should be exercised in order to make these hedgies cover lol

[@reidyoung9721]

@@viadiablo illegal pump and dumps? You are clueless in every sense of the word.

[@Sir_Pumpington_Of_Dumpenshire]

WSB DOES come together to discuss trades, they even have a pinned post with "DAILY MOVES" where millions of folks discuss their moves for the day. lol.

[@feriafyre]

Stop saying synthetic. They are in fact blatantly Counterfeit shares. COUNTERFEIT

[@TheLateral18]

thats what i been thinking this whole time .. they are counterfeiting shares.. like something you cant do with money .. lets call it synthetic money

[@jenperdsmonlapin6953]

I watched The Big Short last month and a lot of documentaries about the 2008 crisis and Im amazed nothing has changed. Its horrible to say but some days I wish someone blows up Wall Street because they will never change and are never made accountable for their mistakes. Theyre a cancer for this planet, Credit Suisse is the same. Europe is not innocent either.

[@StreyX]

None of them found it weird that Hedge Funds are not normally required to report short positions. This is especially odd since there is an infinite loss potential involved with them that could ruin multiple companies.

[@d3m0n876]

nah its cool man you have to be an "experienced investor' to invest in them

[@ErkaaJ]

They took long positions

[@fwd105]

Hedge funds are technically private investment clubs, their requirements are different based on a few things including size, very rarely listed and they do not provide banking services (deposits). They do have to report through Form PF, SEC, FCA and more but these forms are not well designed, often confusing and vague.

[@navd1488]

Isn't this out and out fraud? Shouldn't it be labelled as such and shouldn't the gamblers be prosecuted.

[@dobss714]

Everything should be public. Why do we have to show our positions but they don't.

[@nerdstrangler4804]

You don't have to show your positions, what are you even talking about?

[@bigassdummy46]

Vote Republican

[@Chefranqui]

@@ericzhu7707 robinhood and other accounts sell the data. Which gives all positions. Maybe not specifically. But buys sells and patterns. F off. Ur ok with the market manipulation. Its disgusting

[@Chefranqui]

@@nerdstrangler4804 they buy data. And manipulate markets banding together. But then try to cry foul with deepfucking value/ raoring kiddie. In gme stock. The hypocricy is ridiculous. Continue to be ok with the hedgefunds robbing the retqil investor. And closing down decent companies by overly shorting them. And unloading their dummy positions all at once

[@metaplexstudios2668]

We dont just show our positions, they can see what position we want before it is even taken.

[@kenxiong6830]

There’s 3 ways to make money in this business: be the first, be the smartest, or cheat. I believe Goldman did all three in this case

[@Goztepe-uf6si]

Did you just quote the margin call movie :)

[@kenxiong6830]

@@Goztepe-uf6si yes I did!!!! It was a great movie and I think it was based on Goldman

[@stephenkawasaki5231]

This lady knows her stuff

[@MaZe741]

so, Credit Suisse played by the rules, and got destroyed? Gee thanks, I think I'm beginning to see the "invisible hand" at work here

[@shevek5934]

So basically all these derivatives are designed to prevent markets from discovering efficient prices, leading more severe corrections whenever the secret gets out? So much for properly functioning free markets.

[@dna1238]

Not a financial advisor is what we commonly hear from those advisors with good intentions without the necessary qualifications but Hedge Funds mostly gain media attention their negative impact , more like Rogue Funds. Regulators need to be held accountable.

[@teejay818]

Archegos isn’t a hedge fund, it’s a family office.

[@teejay818]

@@chrissi.enbyYT they had 4:1 leverage. I’m not here to defend Archegos, but let’s at least stick to facts.

[@Jhale716]

@DNA agree. The regulators need to be taking a line of the regulator and not protecting cushy retirement into investment co’s. The crap that goes down where the regualators end up in high paid roles for going soft is astounding. There is an issue with disclosure, part of the market is about 1 over another, where transparent disclosure allows positions against that, which increases the volitility and leads to this stuff. What’s the answer, pass, but transparency creates it’s own issues too.

[@wingo78]

Sounds like 2008, they should ban anything "synthetic". Instead of fines, prison time.

[@jayhay1237]

I love it! "Let me dumb this down for your audience". You're screwed and you don't even know it!

[@BrianCisnerosPerez]

Wolfs in Wall Street still running the game

[@MusingsofaMystic]

Sounds like the rich eating the rich.

[@bobspizza7444]

Ya but when they screw up we pay for it just like in 2010

[@phillaysheo8]

So 13Fs are garbage? SEC needs to sort this out. Hedgies need to be forced into full disclosure of all positions real and synthetic on a weekly basis.

[@samsonchan1488]

This is a prime example of how lack of transparency is detrimental to proper functioning of markets.

[@brunovasquez8500]

"I'm always thinking about losing money as opposed to making money, Don't focus on making money,focus on protecting what you have"-Paul Tudor Jones

[@edwardcrook2926]

The best way to save your money as a salary earner is by putting your money into certified business deals. Although I am originally into real estate I am now investing aggressively in the stock market.

[@ellasteen2522]

Investing is one of the best ways to achieve financial freedom. For a beginner there are so many challenges you face. It's hard to know how to get started.

[@brodiewardak9587]

I understand the Facts that tomorrow isn't promised to anyone, but Investing today is a hard thing to do because i have no idea of how and what to invest in, I would appreciate any pointers or tips to help me maximize colossal profits.

[@jeseeaviv2547]

@@brodiewardak9587 Stock market isn't like any other trading markets as you must learn the basics and then practice before engaging in real time. unfortunately you can't benefit handsomely from an investment adviser's and trading software while learning from your portfolio.

[@gordonhood5656]

@@jeseeaviv2547 This is a great tip, I am considering investing in stocks but I have no idea about stocks to buy or what to assets would the highest yielding potential and so on, Do you have more clues that could help?

[@dennismorris7573]

Excellent reporting by all.

[@seeriktus]

Some actual good insight coming from CNBC for once. Sounds more like Goldman Sachs dumped the market and the smaller participants got swamped. Archegos being one of the smallest got hit hard, and it's bad risk management made it worse.

[@cogen651]

No way it's just this firm! It's all a house of cards, these people are scu!

[@Bryanbkk]

Pump and dump.

[@verdeandrettiiforeigncoupe8174]

Explain, and for which stock

[@g2pick]

Who’s thinking of amc gains?

[@victorespino5650]

Lol nice

[@Phosho92237]

But but retail traders are dangerous to the market!!

[@mattinthehat22]

Give it a couple months and there’ll be some scandal at GS - those other banks will not forget GS jumped first

[@investbetter8748]

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[@jameslau5497]

When the bets go wrong, the big boys collude to dump it on unsuspecting investors. Risk Managers? Market reporting? Insider trading? And this is all legal

[@PureBadBreath]

GS smoking others again, absolutely ruthless. There's no syndication here, GS is free to do this.

[@aggropa]

Yet another example of how “sophisticated investors” are no less prone to mistakes than the average retail investor. Can we please get rid of the PDT rule already, so that I can actually sell out of losing positions?????

[@andrewhaugen8222]

Nobody with under 25k knows how to trade or evaluate stocks. Just asking for people to go broke.

[@Lex41127]

Kate with the comeback nice

[@investbetter8748]

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[@kyler3035]

Well, Leslie Picker is a looker isn’t she.

[@donnab6995]

TRS, Total Return Swaps need to be disclosed.

[@luckaswho5490]

poor people likes when rich people go bankruptcy, look at them how they are happy to announce that news

[@droolalot5795]

What a mess and yellen is worried about bitcoin? Wtf? And the SEC is worried about Elon tweets. GTFOH. This crap is gambling disguised as investing.

[@therealpotheadmedia]

XrP Ripple lmao..SEC is getting owned in that Crypto ruling

[@mikejodrey9010]

Margin call so they have to cover amc

[@Rich_Mond007]

Expect more chaos because of free money from the fed. Lol

[@investbetter8748]

C........ O..... N. .....T...... Â..... C..... T. ..... .m...... e. ...... ..... .o...... n..... W.... . Ą..... T.....S.....a..... P....... P +=1=8=0=6=3=1=8=1=5=1=6

[@timothylanders3189]

Shorts should be announced the same as significant holdings! No if's or buts! Absurd that they can swap derivatives on the sly...

[@edmundlively8137]

For each winner on Wall Street there are a thousand losers

[@tropicalpnch4549]

KZbin's algo is spooky... I had this recommended to me after watching a clip of that exact scene in Margin Call.

[@skyak4493]

This story just keeps bringing spaghetti western film titles to mind -Goldman -"The Quick and the Dead" these derivative contracts "For a few dollars more" we can hide transactions from regulators.

[@jamesmorelandoliver8897]

The Archegos saga is worthy of a screenplay. A lot of investors most likely suffered severe losses by the sudden dumps of huge share positions by the investment banks involved. The market trading rules in the U.S. should be more transparent as to highly leveraged stock positions. It's a gambler's paradise on the one hand, but like "the Martindale system" in blackjack, the stock market has probably cost more people their fortunes than any other form of gambling. Bill Hwang's charitable projects were amazing but anyone who believes God is going to protect their stock investments is not living in reality and, sadly, being highly charitable doesn't change that.

[@kendellfriend5558]

I thought someone was manipulating Discovery in March. The stock unreasonably climbed one day after hours but immediately pulled back I think about 30% and I couldn’t find any info.

[@Megan-rz4fc]

I’ve watched this one a few times tonight.

[@roe2123]

I thought retail traders were supposed to get margin called.

[@pascaljack9115]

It requires money to make money. this is the best secret I have ever discovered we don't make money, we EARn and MULTIPLY money

[@jamesphilip512]

I've worked with 4 traders in the past but none of them is as efficient as he is, he trading strategies are awesome!

[@gretasstepsister9575]

Meow.

[@MultiSVED]

gme will be next player that takes down hf

[@justintran0411]

Whoa finally. I hope they don’t lose their airtime and/or jobs.

[@keithb372]

Margin calls will destroy you.

[@SolitaryDust]

we like the stonk just cover bro it will be less painful

[@pay-o-matteo]

Exercise deep itm contracts. Force them to cover

[@GUIDESPERSPECTIVE]

Stock markets are legal casinos but even worse. Shorting, buying on margin, and every other side bet is like the craps table with all the crap bets on the side that bet against the dice and the players at large, Ie the retail investor while the house cleans up no matter which way it goes.

[@maximumliberty]

Why would I watch CNBC when they haven't been right about anything in the past 10 years?

[@yo2trader539]

I'm curious how prime brokers hedge against these type of risks.

[@victorespino5650]

They buy on the other side too

[@AmarachiDesi]

I’m still confused… Can someone explain in baby terms what happened

[@droolalot5795]

Banks risking it all giving loans to a guy who plead guilty to insider trading in 2012. So this guy could invest in speculative gambling.

[@crockett616]

God the lady on the right is gorgeous! Beautiful smile and beautiful eyes 😍

[@samills70]

so the question is, just how big is the knockon affect with all the swaps in place going to be? Overpriced nonsense market with banks taking huge losses, they cannot get bailouts/bailins unless there is a much bigger catastrophe and they can't sit with these giant losses on their balance sheets. Going to be interesting how this house of cards plays out over the coming months.

[@matthewking8944]

good video the ladys did a great job. looking good like thay should. big plus no kelly turkey neck evens

[@3vimages471]

Ok ... the only thing I don't get is why did all the stocks Archegos was betting on absolutely plummet?

[@workwillfreeyou]

It should be called "The Federal Reserve Call".

[@therealpotheadmedia]

We need more women in Finance

[@VSSushant]

I thought CFD's are illegal in USA?

[@michaelcalibri3620]

Accidentally thumbs upped but then realized its CNBC and reversed that position. I need a Contract for Difference on MSM. Bill Hwang protege Cathie Woods enters the chat.

[@mttgtz8118]

one year later and nothing has been done to address these abuses

[@Mental_Egg]

What is the maturity dates on the next TRS?

[@victorespino5650]

She starts by saying, let me dumb it down for you

[@sutats]

The market is rigged to work on leverage.

[@gregrichey840]

Maybe we should not allow ANONYMOUS positions? Look at how irresponsible activities affected our whole nation after 2008 with Credit default swaps. Who protects the public from these irresponsible players? More transparency and HARSH accountability should be a top priority.

[@Grovingrove]

All this "betting" talk is making me think this is a casino

[@kore6078]

Reminds me of politicians... say one thing but actually doing the opposite

[@hofniamwaalwa3724]

Comment section full of conspiracy theorists...😥

[@lordbeebus9842]

Arch egos.

[@tomlxyz]

"Let's not overcomplicate things" The basic concept is pretty trivial but it's not explained. So you're basically left to speculation if this whole thing is right or wrong. And if you understand it you're probably watching something that actually explains what's going on instead

[@jamesbutler4185]

they need to get rid of that stupid PDT rule and put more marker makers back in

[@AudiTTQuattro2003]

Short answer: there is no real transparency on Wall Street.

[@george1353]

Please stop trading with huge leverage. The greed is not worth it.

[@qinshi6278]

Why did they brought boring stock ( ????? We must ask)

[@MrAxes777]

Short selling stock should be illegal

[@thankyouforyourcompliance7386]

At one time people should realise that money making is just a stupid mythos and all these people waste precious time to actually do something meaningful. I met people who earned riches and were still greedy as if they had no home and nothing to eat. That's because they had nothing else to look forward too.

[@Mentallect]

Wall Street "Greed is Good" philosophy of business on display.

[@xtrailz]

Who needs risk management when the central bank will always bail you out?

[@schrodingerscat3912]

we are just now learning what CFDs are XPTUSD?! what's that!?

[@Rezin_8]

53% loss so far 😕 thanks

[@Bestoftherest222]

Hedgefunds are freaking out since a margin call has finally happened, more are to come Hedgefunds and GME will launch to the moon!

[@christinanapolitano6837]

JP Morgan are also full of it. Watch the callopse in two month

[@supersasquatch]

why was archegos margin called?

[@fee_ic4981]

R u serious 😳

[@supersasquatch]

@@fee_ic4981 i later researched and learned that answer :D

[@bharat_arora]

Why is she laughing

[@seanmong9524]

Information asymmetry generates alpha, hence anonymity is desirable. The bigger the position or the higher the leverage, the greater the desire to remain anonymous. Caveat emptor.

[@ny_cruz]

Supply, demand, and manipulation.

[@s0ngsterr]

Looks like big flaw...Systemic problem...

[@ChosenOne6666]

Big banks said "we are not taking big losses our investors are going to have us for lunch" they sold drove the stock price down! I would buy those prices will go back up. Buy buy buy!! Hold. Hold. Patience's.

[@DigitalYojimbo]

Oh man I wish I bought puts on some of those companies

[@happie9732]

I don't know why CS will be impacted so much. For a broker, they just collect commission and force to sell the position when it hits margin call.

[@TheDavidLiou]

it's a lot harder when everyone is selling

[@virtancom]

Since the position is synthetic it is CS who has to buy and hold assets (stock). Because of bad risk management they allowed the borrower (Archegos) to go into deep losses and had to sell the assets much lower. They take all the borrower has but since they are last in the order it covers a tiny fraction of their real losses. That’s how i understand it.

[@TheDavidLiou]

@Tee because they are the lender, not the hedge fund.

[@nerdstrangler4804]

@Tee No, stop reading wallstreetbets.

[@verdeandrettiiforeigncoupe8174]

Colddddd world 🥶

[@G-immortal7]

That's what naked short seems 🤨 they have to be responsible

[@chrisjoel6665]

this made me wanna puke, how hedge funds get away with everything, even after what happened in 2008 ... God will do us justice, the working, good people of the world that desperately need money to pay their debts, and have a better life which they deserve. I pray you all dont lose money in this crazy market and that these hendge funds get stopped by the SEC, which I doubt, but anything is possible if you trust in God.

[@leagueoflegendrankednormal6387]

God is death, buddy

[@john_mccarthy_hi]

You think *this* is bad? Wait until the cryptofall.

[@josephbroseph1284]

Shut it boomer

[@Rezin_8]

Why I went ALL IN BITCOIN 🥸 STOCK MARKET IS LIKE MONOPOLY BOARD GAME

[@annmarieparker7045]

There millions of shorts still out there.

[@kwahdomo9598]

Daaam Kate Kelly is hot 🔥

[@toto-yf8tc]

At some point when your client is buying a stock up 50% in a few weeks without any good reason you should increase the collateral. Simple backtest. But those brokerage are managed by ill people who believe in momentum. Momentum or Value are how they call insider trading. They probably believe the guy knew something they don't and we're very existed to see him making huge money this year until they realized he was a crook

[@clydetheteenageboy2441]

Let's sit down and look stupid

[@peter9910]

0:16 lol burn