SEC needs to shut down WSB and indict the instigators
- Thread starter longshort
- Start date
Communication is in the beginning of what I emphasised ("by the use of the mails or any means/instrumentality of interstate commerce"). A legal term that includes any interstate communication.
Obviously there's more to manipulation than just "discussing which stocks to buy". The entire WSB subreddit was and is obsessed with effecting transactions to raise the price of certain stocks in order to induce a short squeeze = purchase of such security by others (Melvin). And they succeeded.
Here's what the case law typically requires and I think it all took place there: (1) The accused had an ability to influence market prices; (2) the accused specifically intended to create or effect a price or price trend that does not reflect legitimate forces of supply and demand; (3) an artificial price existed; and (4) the accused caused the artificial price.
Did you bother to have even just a brief look at what you defend? WSB is a disgraceful amalgam of foul language, complaints about Robinhood, and apparently illegal market manipulating pump-and-dump schemes. Below is a small selection, all copied verbatim:
GME Squeeze and the Demise of Melvin Capital (submitted 3 months ago)
GME Gang vs. Melvin Capital (submitted 1 month ago)
Melvin's losing money on its GME puts. Let's get it over $24 retards! (submitted 1 month ago)
Melvin vs WSB! Place your bets retards... GME to the MOON!!! (submitted 28 days ago)
Melvin Capital - GME Put Positions (submitted 15 days ago)
$GME /r/wallstreetbets vs Melvin Capital (submitted 14 days ago)
Fuck Melvin Capital (submitted 14 days ago)
Melvin Capital shorting GME (submitted 13 days ago)
GME going to the moon, melvin capital gets nutted on (submitted 12 days ago)
FUCK MELVIN CAPITAL (submitted 12 days ago by)
Bought in yesterday and averaged up today. Fuk Melvin Let’s ride (submitted 12 days ago)
Yolo update: EAT THIS MELVIN (submitted 6 days ago)
Melvin is bleeding in the billions. Position: 100% all-in GME shares on a cash account. (submitted 2 days ago)
Buy the dip! Fuck Melvin. $BB $GME to the moon (submitted 1 day)
Missed GME and Still Want to Fuck Melvin? Buy $BBBY (submitted 1 day ago)
Yes, but communication isn't illegal in itself so it has apply to something. And your cited paragraph states that this communication needs to apply to placing false/pretend trades. So you can't just make unrelated conclusions that have no basis in law. Maybe there is another law confirming what you stated, but your own screenshot shows that the only illegal action is communicating for the purpose of arranging false/pretend trading to manipulate the price physically, not simply telling people that the price will go up or you want it go up.
"I think $GME will go up and I want $GME to go up!"
Now what's illegal about this?
Oh I know it well. My issue is more with YOU - particularly you name calling a whole message board of people that you are have never met before. The fact that you would *generalize across millions of users* and call 2.2Million users "scum" shows to me what an ugly person YOU are.
Like I said, it it likely you are the one that is butthurt or else some of your L/S friends are. If they were short Gamestop, they should have understand the risks.
Don't even act like Investment Banks and Hedge Funds don't do behavior 100x worse than this everyday, yet you think you are going to prosecute a bunch of random retail investors whose average account size is very very small in comparison. I think that alone shows you can not prove (1) above.
Also, "legitimate forces of supply and demand" covers ALOT of ground - including dynamic delta hedging...so good luck with that.
Sen. Elizabeth Warren lambasted the Securities and Exchange Commission on Thursday, blaming the regulator and its failure to act for a chaotic dayslong blitz of market speculation.
“We need an SEC that has clear rules about market manipulation and then has the backbone to get in and enforce those rules,” Warren said. “To have a healthy stock market, you’ve got to have a cop on the beat.”
https://www.cnbc.com/2021/01/28/elizabeth-warren-gamestop-robinhood-market-manipulation.html
“We need an SEC that has clear rules about market manipulation and then has the backbone to get in and enforce those rules,” Warren said. “To have a healthy stock market, you’ve got to have a cop on the beat.”
https://www.cnbc.com/2021/01/28/elizabeth-warren-gamestop-robinhood-market-manipulation.html
You called me a "whiny child", "butthurt", "ugly person", and my friends "moronic". Have you ever met me or my friends before? It hardly gets any more hypocritical and false.
Is a fact you made up. I was talking about those who did something specific as documented in the institutionalinvestor.com link that immediately followed my paragraph (that you take so much issue with). Maybe read it the next time, then complain.
Of course she did. And AOC and all the others... oh the humanity!!!!
Because those folks on the Hill need to kill off another month of sound bites and virtue signaling and endless hearings about yet another topic that is anything but working for the people of the country in some meaningful way. And in the end nothing changes.
They want to act like Robin Hood was somehow acting in cahoots... with who exactly? Nothing changes because these brokers not only need to protect themselves, but their customers - from themselves. You've read about the people on reddit asking what an option is or how shorting works - guess what - these guys have Robin Hood accounts. If Robin Hood did nothing and a few of these retail pikers blew out their accounts and wound up negative 6 figures due to a halt, those same congressmen would demand hearings wanting to know "why Robin Hood didn't protect the little guy" from big evil Wall St. and those terrible hedge funds.
You're reading it wrong.
It really doesn't have to apply to placing false/pretend trades. The section intro is a prerequisite for all that follows, okay. But then each of the numbers like (1) or (2) or (3) are distinct alternatives. One is enough.
Within (2) the only thing resembling your "false/pretend trades" is in "creating actual or apparent active trading". These are again alternatives, as in actual or apparent.