Hot water and thin ice, that’s double whammy for you.
GME, the GameStop Saga is still in progress. The revolution will not be televised. But the big takeaway is the GameStop issued a Stock splividend that the DTCC fucked up massively.
The DTCC being the Depository Trust & Clearing Corporation that is a private company in charge of many things to include the clearing houses for most of the securities traded over the messy hot desks of Wall Street. It’s a consortium comprised of Brokers and Banks. Clearing Houses are regulated by this private entity, because that’s how we structured our so called ‘free markets’.
So the DTCC ‘accidentally’ or perhaps ‘intentionally’ committed international securities fraud violating many many rules and placing many companies and corporations into illegality based on the DTCC selling bad pussy.
GameStop issued a Splividened,
A splividend is the new neologism for a share distribution. It’s a stock split via a dividend. So the stock itself isn’t a traditional split, but it’s effectively the same as a split. The only difference is that the Transfer Agent (Computershare) distributes real shares to Direct Registered owners and the DTCC, and the DTCC issues the real shares to the Brokers and Banks to give to their street name holders.
It was supposed to be a proper Stock Dividened;
Well, somewhere along the line, between the DTCC getting real shares and issuing them, something fucked up.
Many Brokers fucked it up,
A lot of brokers failed to issue shares. Failed to issue them in a timely manner. Some failed to issue them at all. Some said it was a regular stock split and issued shares like that, which was wrong.
Some Brokers gave IOUs instead of the dividends.
Some brokers, like IBKR, illegally opened up short positions on cash accounts instead of issuing more shares per what a dividend should be.
Many Brokers simply ‘fucked it up’ -me (yes I quoted myself).
Even the German equivalent of the SEC, Bafin, issued this statement;
Which is a message from Bafin to have account holders and brokers double check that they did the right thing.
This official statement even say “the corporate action has so far been treated as a stock split and not as a stock dividend”.
So there’s indeed confusion and an official statement admitting that there was indeed a mess up.
Brokers mess up;
A German broker said it was a stock dividend. Then said it was a stock split,
In fact, here is a list of similar brokers that treated this as a ‘stock split’ and not a ‘stock dividend’;
“I just received confirmation that the GME, the DTCC, and Fidelity are treating this as a stock split”
A lot of the brokers, especially the international brokers, said they were doing as told and instructed by the DTCC or their trade intermediary. So the,
Fingers point back at/to the DTCC,
Even Vanguard had issued an email to one user pointing that the DTCC improperly marked the distribution.
Sounds like the DTCC gave instructions for a forward stock split, a traditional stock split.
This results in international securities fraud,
Potentially, due to the nature of many brokers doing different things and ultimately making this distribution a total shit show.
This distribution was to be a dividend yet many brokers made it a stock split. Unless all these brokers are intentionally ignoring the dividend and issuing a split. Which is unlikely unless they all conspired to do this.
Unlikely to be a conspiracy between all brokers. Instead, we should focus on what’s more likely.
What’s more probable is that the DTCC inaccurately reported this as a stock split instead of a stock dividend. Resulting in many brokers fucking it up based on the guidance from the DTCC. Making the DTCC the responsible party.
Here’s an alternative theory from someone else;
Point is, people are pissed at the DTCC and are taking action;
People are reporting the DTCC because they fucked with their money and the market integrity. You may not know this, but European Markets have better regulations and security for retail traders than the US markets. So, uh, it’s sort of a big deal.
How do we know it’s not someone else’s fault?
Well, GameStop did their job and they clarified with Computershare, their transfer agent. Computershare was very forth coming and open about all of this.
Computershare is the transfer agent for GameStop and they are responsible for overseeing that this is happening right on their end.
Computershare clarified, that this GME splividend was a distribution via a dividend and not a traditional stock split;
So, you can do some asking, but Computershare did their job by sending the require amount to the DTCC.
Here’s a picture to help you understand that this is likely the DTCC’s fault;
And somehow, many brokers fucked up;
But we know Computershare is good;
If we were to trouble shoot this. If we know the input is good, but the output (or every end user) is fucked up. We have two options;
-All of the Brokers are bad and fucked up, maybe even conspired to fuck up.
-The DTCC fucked up
Yea, so it’s safe to say that the likeliest scenario is;
The DTCC is on the hook and told brokers to improperly issue the splividend.
The Point of all of this is;
That the Brokers and the DTCC aren’t playing fair. Mainly the DTCC isn’t playing fair. But you have to remember that the DTCC is a consortium that is comprised of brokers and banks. So the Brokers and the DTCC aren’t playing fair.
That’s the US markets, and it’s fucking up other markets. The US DTCC is making things difficult for European traders, Hong Kong Traders, Korean Traders, Japanese Traders, etc. It’s international securities fraud.
Or a “simple” mistake.
And all of this points as evidence towards there being more shares in existence than there should be. Judging by the fact that Melvin Capital went Bankrupt, the shorts in GME are highly likely to not have closed their short positions.
There is so much evidence pointing to GME shorts never closing. I know there’s no safe bets, but I’m willing to bet a vasectomy on GME shorts not closing. I’m pretty damn sure.
So, this will get ugly. The question is when and not if. And more so, how ugly and in what way?
(Also, for tax purposes, a split and dividend are a bit different. But international securities fraud is a bigger deal than one nation’s tax implications.)
This also means that there aren’t enough real shares to be dividend payable towards ALL the owners of GME shares. Meaning Brokers have to fight for the dividend real shares, or else they be left with a short position that they didn’t ask for. (Which might explain why IBKR opened up short positions on cash accounts).
And yea, this is a shit show;
“GameStop has already distributed the shares of common stock required for the stock dividend to its transfer agent, which has confirmed it subsequently distributed the appropriate number of shares of common stock to DTC for allocation to brokerage firms and other participants.” –GameStop
There’s a lot of chaos, and this is all due to how grand and glorious the shit system behind the curtain
Lmao, here’s a meme for your troubles;
GME saga is still a thing.
Brokers are obviously not your friends.
The DTCC is a scam, and also not your friend.
Real shares and fake shares seem to by synonymous. So what is the difference if the market treats fake shares as real shares?
This Clown Casino called the US equities market is just itching to blow.
And as of writing, the DTCC hasn’t cleaned up this mess yet. So, this shit show is still going on. Someone’s gotta clean this mess.
I mean, what’s the problem? Just deliver the shares to the proper owners.
It’s not like there’s more shares in existence than there was accounted for in a dividend.
It’s not like we have synthetic naked shorts hidden out there preventing a proper distribution.
That’s the case. . .
*Not Valid Financial, Legal, Life, or Any Advice
Post Edit September 3, 2022 update;
I added in the GameStop statement for the Stock Split above. In quotes.
And Here are some more receipts to add to the proof of all of this,
This Twitter user then goes on to discuss issues/evidence from/at German BaFin, Hang Send Bank, Koreas Securities Depository, WealthSimple, and GameStop Filings and GameStop themselves.
“However, multiple brokerage firms, both US based and international have confirmed that they did not receive new shares from the DTCC.”
The internet has a lot of eyes, when people are upsetti enough, it seems truth is in order.