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To: reed13k

Are the guys who shorted in threat of bankruptcy? Will the big banks be on the hook?


847 posted on 01/27/2021 9:42:25 PM PST by outinyellowdogcountry
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To: outinyellowdogcountry

Yes the hedge funds are in threat of bankruptcy there are other hedge funds loaning them money apparently to stay afloat, big banks shouldn’t be impacted unless the HFs owed them money.

Bigger concern may be some of the brokerage houses that will eventually have to give the original owners back the shares that were borrowed. If the HFs don’t cover their shorts by buying the stock back then the brokerage house that loaned the stock to them is still on the hook to make the account owner whole that the brokerage borrowed it from to lend out.


883 posted on 01/27/2021 10:46:48 PM PST by reed13k (For evil to triumph it is only necessary that good men do nothing)
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