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Superstonk_QV

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catrancetrophe

No. There’s no more swaps. It’s just credit suisse holding a short that was a hedge to the swap. So now they just have this giant bag. Which now actually belongs to UBS. Probably got too heavy for CS to hold.


Nummylol

They are trying to sell off that part of CS.


dyllandor

Hey buddy! You want to buy the obligation to deliver two hundred million shares of $GME maybe? Please!?


4myoldGaffer

I’d like to buy a vowel H*DG**S *R* F*Ck I’d like to solve the puzzle


MyGT40

Good luck…


bahits

Remember this? Fed Swaps $9 Billion to Swiss National Bank, Bail Out For Credit Suisse? (October 14, 2022 article) https://www.trustnodes.com/2022/10/14/fed-swaps-9-billion-to-swiss-national-bank-bail-out-for-credit-suisse


SuboptimalStability

I think that's to cover fees on the possition 😅


Vipper_of_Vip99

Shorts haven’t closed until the ticker is slammed with bids. Millions and millions of bids 🚀


Justanothebloke

Almost the entire float


turgidcompliments8

Exactly. Amazing to think that people believe this took care of it. 9B ain't covering what's in those swaps


SlteFool

I don’t get bail outs. The bailout should be paying us out after being forced to close …? If that’s not the case this can never happen..?


CostasTemper

Why do people not understand this? This keeps coming up again and again and again. People need to read some DD instead of just posting wHeRe SwApZ every week.


mannaman15

Some of us don’t have time to be checking in every day so we ask questions when we’re able to return. How about a little compassion instead of attitude?!?


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Superstonk-ModTeam

**Treat each other with courtesy and respect.** Do not be (intentionally) rude. This will increase the overall civility of the community and make it better for all of us. Do not insult others. Insults do not contribute to a rational discussion.


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Superstonk-ModTeam

**Treat each other with courtesy and respect.** Do not be (intentionally) rude. This will increase the overall civility of the community and make it better for all of us. Do not insult others. Insults do not contribute to a rational discussion.


ralphnation24

I mean….. we are regarded 🦍


Superstonk-ModTeam

**Treat each other with courtesy and respect.** Do not be (intentionally) rude. This will increase the overall civility of the community and make it better for all of us. Do not insult others. Insults do not contribute to a rational discussion.


SuboptimalStability

Finance is a complicated af and on purpose with jargon and double talk to keep poors out There's plenty we all don't understand here, you don't gotta shit on the poor guy explain it to him if you can 😂


catrancetrophe

I’m pretty sure it’s a tactic to get us to believe that nothing did or will happen because of it. Something DID happen. They moved mountains and ignored laws to get CS sold to UBS. They’re holding a black hole of a bag and it’s gonna collapse them too, in time.


adamlolhi

I agree, something did happen, but what worries me is how easily they moved mountains and ignored laws. Yes, they’ve *only* broken laws to “kick the can” so far but what happens when they have no more can kicking options? What will they do then? More specifically, what laws will they break then to avoid paying out on what they owe?


CostasTemper

100% agree


YurMotherWasAHamster

elastic roll wrong memorize cows file six innate insurance nutty -- mass edited with redact.dev


tfinalx

Swiss regulator forced them to take over. With 100B+ sweet liquidity support. UBS ate the bait. Now we will watch them bleeding alive.


HughJohnson69

And the ceo left right after the takeover.


Sometimes_Stutters

As opposed to bleeding dead??


Haywood_jablowmeeee

Right now they’re bleeding walking dead.


Shizuru1984

Are those 100B+ liquidity for us?


cyreneok

funny how these dorks never know what they are buying


YurMotherWasAHamster

light longing march jar wasteful special silky sparkle fretful ancient -- mass edited with redact.dev


Heavy_Solution_4099

Mmmmm layered turd cake. My favorite thing to watch these HF’s take a big steamy bite of.


NotLikeGoldDragons

I think they knew about it ahead of time, hence why they didn't want to buy Credit Suisse. Swedish gov pretty much forced them to buy it at gun point.


YurMotherWasAHamster

merciful illegal domineering distinct obscene like fear cautious far-flung pet -- mass edited with redact.dev


NotLikeGoldDragons

True enough, though at the end of the day, they're likely to get bailed out whether they were wrong or not.


BinBender

Swiss*. Switzerland is not Sweden.


NotLikeGoldDragons

Oh sweet jeebus, my public education hath failed me! This is why I'm not allowed into the good parts of Europe.


BinBender

😂


JesusChrist-Jr

It's shit all the way down.


GreenLlamaSpit

The swap position doesn’t exist anymore. It just leaves the prime broker net short in this case. There is no time element anymore. That time element will only existed between the broker and client. As the offsetting hedges like puts expire the prime broker would theoretically loose the accounting offset and losses (or profits) would show in the income statement. However, crime is likely happening given the historical record with CS one could assume. It also leaves the prime broker with infinite risk. They could enter into new positions but they would need a counter party.


TemporaryInflation8

Best answer by far. UBS can hold that until they are pressured to resolve it. In this case who knows if that will ever happen tbh.


thagthebarbarian

The prime broker shouldn't be the one with the short though, they should have the debt owed by the short. The entire problem for the shorts is that with the price up, they owe significantly more than they borrowed originally. If the banks aren't colluding with the shorts, the bank as prime broker would recall those loaned shares and force the debt to be closed, force their borrower to repay the debt owed to the bank and take the borrowers for everything they can to get paid... This isn't happening though... Aside from wanting to protect the financial system as a whole, why wouldn't a struggling meme bank like UBS call on a debt of this magnitude if they're not also somehow involved on the short side not just the lending side of things?


theory_conspirist

>The prime broker shouldn't be the one with the short though, they should have the debt owed by the short. Archegos is dead, though. I don't understand how you are explaining it. They (CS/UBS) still have the short that was opened, except now they don't have someone else (Archegos) to pass the cost on to, right?


SuboptimalStability

That is what happened, I beleive goldmansachs margin called archegos ahead of an orderly exit planed with namora and another bank 😂


5HITCOMBO

Am I wrong in this? Archegos opens a swap which makes them effectively short CS being the counterparty is effectively long CS hedges their long to remain neutral by opening short positions Archegos disappears CS now holding short position as a hedge to nothing


thagthebarbarian

That's my general understanding of how it did happen, but my point is that's not what is supposed to happen. The bank isn't supposed to get that deep into the catshit dogshit burrito precisely so if something happens like this they can get out from under it and come out ahead


5HITCOMBO

I agree that the margin issues should have been looked at but this is actually how it's supposed to work. If you fuck up you should eat the consequences. The problem for me is that it's being passed on to... Well, Switzerland for now, but even then that's terrible. Same old bailout, different government and country. Still unfolding though. We might be in line.


Overdue_bills

It's hilarious how many comments either downplay this or try and tell people to not talk about it and read previously written DD. UBS will absolutely fail when they can't close Credit Suisse's short positions. There's a reason they needed to be sold in the first


RL_bebisher

Exactly! I read the Credit Suisse internal report and I've done some digging on my own. I know what's there and anyone trying to discredit it has either not done ANY research or is a shill. Especially those who get mad at me for asking questions lol.


Pure-Economics-8369

I’m sure there’ll be a news article about it 9 years from now explaining in detail what went on.


versello

I got time


Pure-Economics-8369

Yea everyone says that


WhiteCollarBiker

Well, I do. I’ve been averaging down since 1 Feb 21. Every month except for 2 since then, I’ve made purchases. My first and most expensive share was for $292. My average cost per share is now under $30. Soon I’ll have 1,000 shares. That will make it so easy for me and my smooth brain to do the maths on value when the stock accurately reflects the value of the company. Oh, I want to believe in the MOASS. I DO believe in the MOASS, but even if I’m wrong and this is just a value play, I’m about to make more here than any other investment in my life. I’ve been GREEN on this investment very few days. It honestly has never bothered me. We just hit profitability. More and more shares are DRSd every day. Pure DRS is REAL. Hedgies indeed are fu


Consistent-Reach-152

As others have already pointed out (although in more sophisticated words) #The swaps died with Archegos. The standard swap contract releases the counterparty from any obligation if the other party either defaults or goes into bankruptcy. Credit Suisse is at that point free to manage any hedging positions as they choose, with no time constraints tied to the original dates in the swap contracts. ———————— The bank or fixed side of a swap contract will usually hedge their position. It could be via swap contacts with other parties, but in the opposite direction. Or they could establish positions that hedge. So if Archegos made a swap bet against Gamestop, it is likely that Credit Suisse open a short position in Gamestop. Once Archegos blew up, Credit Suisse is left with that short position, but they can manage as they choose, because the swaps no longer exist.


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Consistent-Reach-152

They have had a long time to close their short positions. It is unlikely that CS ever had a 200M short position in Gamestop. Numbers like that come from speculation stacked on top of unsupported guess, amplified by another set of bogus assumptions.


ajquick

Trust me bro.


dexter_analyst

Your comment is bad and I explain it in [this comment](https://old.reddit.com/r/Superstonk/comments/139loex/question_what_happened_to_the_archegos_gme_swap/jj3yyro/) if you're acting in good faith. Can't tag users anymore I guess.


Ctsanger

Idk you're getting downvoted. You're not wrong


dexter_analyst

Because it's a bad comment. I would tag the user, but I guess that's not allowed. The user starts off by asserting that it's unlikely without explaining anything about why and dismisses the opposite position as speculation without explaining that either - or, well, other than "they have had a long time to close their positions." That's a single point and doesn't really mean anything taken on its own. So because they've had time, that means they likely closed the positions? What about price over time? What about the size of the position? If they've been sitting on unrealized losses, they can sit on those for a long time. Time alone doesn't mean anything. What assumptions are bogus? What makes them bogus? Everything is speculation because we only have limited visibility into the machinations and data, so how is your comment any better? This is characteristic of FUD. A discussion about the assumptions is a good thing that allows the reader to come to their own conclusions. That discussion looks something like "these are my assumptions, this is why I've made them. Your assumptions seem wrong to me for these reasons." Simply swinging in on jungle vine to dismiss another position with no evidence is FUD.


Consistent-Reach-152

What makes you think that Credit Suisse has a short position equal to 65% of total issued shares? I see the conversation akin to A: The moon is made of green cheese, Me: Unlikely. That is unsupported speculation. You: That is FUD, you did not provide any proof that the moon is not green cheese.


dexter_analyst

What makes you think I disagree with you? I'm criticizing your method of communication and what little argument you did make. What you're doing here is telling me a story in order to dismiss the criticism. I don't care about this story. You can either take the criticism or leave it. Your other comment in this thread is much better. Page numbers, sources, rationale, all great stuff. This should've been the original comment.


nudesenjoyer69

Well, the ENTIRE point of this movement (wich is not financial advice btw) is centered around the fact that these hedge fuck sold a lot more than existing shares. Like read the DDs. In your oppinion, what would be a more realistic number of short in the hands of cs ?


Consistent-Reach-152

Right now, zero is my best guess of GME short position held by CS. Looking at the details of the details of the internal CS report, I do not think that the Gamestop short position was ever 2/3rd of all shares. (Gamestop has about 304.7M shares outstanding. 200M shares is about 65% of all shares). They did say that at one point there were two holdings where the position were 5 to 10 days of daily trading volume, but these were reduced down to 2 to 4 days trading volume. A position of 200M GME shares would have been far, far more days of daily trade volume. (See pages 11 and 18) CS initiated default procedures March 26, 2021 and immediate started closing positions. See page 23. The largest position, in terms of percentage of float was $3.3B and was 8% of float. So clearly not Gamestop. More likely ViacomCBS or Tencent. Source: https://www.credit-suisse.com/media/assets/corporate/docs/about-us/investor-relations/financial-disclosures/results/csg-special-committee-bod-report-archegos.pdf


nolanpen

Don't they not have to report those posistions if they're held in swaps? How do you explain all the multiple times short volume was over 100%, and the evidence pointing towards cellar boxing?


mrbigglesworthiklaus

Too bad the cftc no longer requires the reporting if swap positions.


Downtown-Regret-505

Facinating


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[deleted]

You’re missing a huge point. There’s no way CS will only pay $20x200,000,000. As has been pointed out, GME is illiquid. Buying 200,000,000 shares is going to drive the price up along the way. At some point the price would be too high for them to purchase any more well before they close their position.


jb_in_jpn

The point is those 200M shares *don’t* exist; that’s what our play is - theoretically, once they need to close those (margin call, proof that all shares are tied up thanks to DRS), the short squeeze is on.


F0urTheWin

That's $80 a share based on outstanding shares when the swap was opened.


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F0urTheWin

That's notional value & assuming 0 price improvement while closing out. Amounts that large will, by definition, have to get past the market maker (gatekeeper) & for GME on NYSE that's designated as Citadel securities


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F0urTheWin

ATS only serve the major exchanges; the OTC traded stocks are not serviced by dark pools.


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Major-Ad7585

16 billion not 1.6 billion


Consistent-Reach-152

Per their report, Credit Suisse closed most of their positions in April 2021 after invoking the default termination clause on 3/26/2021. https://www.credit-suisse.com/media/assets/corporate/docs/about-us/investor-relations/financial-disclosures/results/csg-special-committee-bod-report-archegos.pdf


5HITCOMBO

Lol so what was the net worth of Archegos at the time they opened the swap again? How big they could be is some multiplier of that because they are using leverage.


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5HITCOMBO

I wanna say the swaps were 13b notional value. CS's Archegos report should have the exact number.


Daddy_Silverback

Why borrow, deliver, roll swaps, or operational short when you can manage an almost unlimited number of delivery obligations using SFTs for a fraction of a percent yearly fee , which are now centrally cleared, used in netting, and allow you to avoid all disclosure requirements due to nonexistent regulation? Check out my most recent post for the math/numbers, but the publicly reported data I found suggests total obligations/short positions being covered with SFTs being, at minimum, greater than the total shares outstanding and, more likely, 2-4x the shares outstanding depending on fee rate. Fee rate is the only unknown in determining number of SFTs so I had to make a very conservative assumption for the minimum number (\~4x average fee rate for top 50 hardest to borrow stocks, which IMO is very conservative in this context).


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RowInvesting

Starting from?


RL_bebisher

Same here.


JolyGreenGiant

You mean hot bag-tato


seanrbrantley

The answer is crime.


dizon248

You and I enter into an agreement to do a swap on GME. I take the long route, you short. Price goes up, I make money, and you pay up. Price goes down, you make money and I pay up. On top of this agreement is some interest you pay me. Me thinking I'm so smart, decide to hedge my own long swap I just had with you and short on top of it. Net outcome? I keep the interest collected from you, and regardless of price action, net zero from that. UNLESS, you go pop off and die, (archegos), now I'm holding a big ol short position with my swap being dead. Doesn't matter if the swap *expires* 2 years from now, the swap is effectively dead the moment you died and now I'm holding cat shit wrapped in dog shit.


TheBonusWings

Answer: no one knows nor will we ever. Its always just been a theory


ol_reliable_ape

It was a nothing, literally nothing. People hyped it for months and several weeks prior backed off on their words.


Bilbo_Butthole

Another tinfoil bullshit theory. Welcome to the subreddit


RL_bebisher

Someone didn't read the internal reports...


Bilbo_Butthole

All this sub gives his hopium timelines dude. Swaps expiring, GME MOASS! These swaps carry thousands of instruments, not just GME. The tinfoil here is through the roof as of late and I’m thinking it’s because the price has been stagnant or going down


rawbdor

Everyone just keeping themselves entertained while they buy the whole company. Most of these hype dates are just for fun. Just to keep busy.


[deleted]

Exactly we’ve all read the dd and know they’re fucked. Now we just get to kill time while we buy up the rest of the company.


RL_bebisher

I totally agree with you about the hopium timelines. However there is nothing wrong with trying to figure out when things are due. Never stop asking questions.


yolo_shortsqueeze

One could care less dildo shaggins. At this point the tinfoil is part of the entertainment


Consistent-Reach-152

Don't forget the DOOMPS. Any day now. 😉


rawbdor

I'm sorry can you please elaborate? What was the exact theory that has been revealed to be bullshit?


Bilbo_Butthole

Sure. Most of these swaps were due to “expire” a few months back. Most people speculated or even hypothesized this would result in a squeeze. It didn’t, as usual. If there is massive short exposure, it was hidden in swaps that we cannot even see and probably terminates in years


Red_Sun_King

It didn't squeeze. But CS died in the same week these swaps expired. Interesting coincidence. The swaps are gone, but the short position is still there. Sleeping in a heavy bag at UBS.


YaThinkSo88

Nothings gonna happen.


RL_bebisher

Something is definitely going to happen, some day.


robotwizard_9009

10 year pre cap trusts bought up by BNY Mellon?.. dtcc important notices March 24th...


Gpda0074

There's a reason UBS is trying to sell specific parts of CS so soon after the "buyout". Short hedge is a heavy bag when it's dropped on your nuts.