So, every brokerage but Fidelity is dragging their feet on transferring retail investors’ shares to Computershare, some like TD Ameritrade saying it could take 8 to 12 weeks.
This gives every indication that most of these firms haven’t even purchased the shares for investors, merely giving them cash and marking them as “owners” of the stock they purchased a position in.
I think this may be what triggers the squeeze. This is absolutely insane and reveals how much of a charade Wall Street is. It’s no more than a well orchestrated, government sanctioned ponzi scheme, one that could have continued operating without anyone noticing were it not for a few million investors deciding to park their money in GME and AMC.
DRS is forcing brokerages to purchase the stock. Now, these purchases could affect the price significantly, almost generating its own kind of squeeze. Or, since these companies all seem to be conspiring together, they may push them through the dark pool so the price remains suppressed.
But, even if they push these through the dark pool, they still have to buy them with cash. The more people DRS, the more expensive this will get for brokerages. This would be a repeat of Robinhood’s January margin call applied to multiple companies. TD, E Trade (which I’m on), We Bull, Charles Schwabb, WeBull…
This could very well compel intervention by the SEC and government because of the sheer scope of this event.