GameStop short-sellers lost $1.6 billion in a single day as Reddit traders rebelled against them
Ben Winck, 25 January 2021
Investors betting against GameStop and the army of bullish retail traders have already lost billions in 2021. Mark-to-market losses for GameStop shorts on a year-to-date basis reached $3.3 billion when trading closed on Friday, according to data from the financial-analytics firm S3 Partners. Losses totaled nearly $1.6 billion on Friday alone as shares rocketed 51% higher into the close.
GameStop stock has continued to climb as Reddit users and day traders have extended the unusual momentum trade into its third week. The company’s shares initially leaped on January 11 after it agreed with an activist investor to add three new directors to its board. The day’s gains drew in swaths of retail traders, including members of the popular WallStreetBets subreddit. Continue reading “Article: GameStop short-sellers lost $1.6 billion in a single day as Reddit traders rebelled against them”
Goldman Sachs starts shorting the dollar as economic reopenings boost foreign currencies
Ben Winck, 01 June 2020
Economic reopenings outside the US are lifting foreign currencies and creating a strong opportunity for some bets against the dollar, Goldman Sachs strategists said in a Sunday note.
Cash assets served as an initial safe haven for investors as the coronavirus spread throughout the US in March and fueled new recession fears. With economic reopenings taking effect around the world and new stimulus measures further lifting sentiments, the firm highlighted the Norwegian krone as best suited for a bet against the dollar.
“We have maintained for some time that it was too early to look for outright and sustained dollar downside given the balance of cyclical risks,” the team led by Zach Pandl wrote. Yet “the steady reopening process, limited evidence of a pickup in COVID infection rates” and new relief policy like the EU Recovery Fund make Norway appear “well-positioned to outperform through the coronavirus shock,” they added.
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The Fed scolded Deutsche Bank for money-laundering protections, new report says
Business Insider, 14 May 2020
The Federal Reserve recently lambasted Deutsche Bank for loose controls as the firm looks to overhaul its reputation, The Wall Street Journal reported Thursday, citing a person familiar with the matter.
The central bank notified Deutsche Bank in a letter that it had ongoing concerns about the firm’s US money-laundering protections, according to the report. The Fed also criticized the company for not resolving issues that led to its “troubled condition” classification in 2017.
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Overstock’s controversial former CEO sold his entire $90 million stake to pile into gold and crypto investments (OSTK)
Ben Winck, 19 September 2019
Overstock founder and former CEO Patrick Byrne sold nearly 5 million shares totaling roughly $90 million in order to invest in “counter-cyclical” assets like gold and cryptocurrencies.
Byrne plans to make his new investments by Friday. He can also provide “a capital injection if needed by buying back into Overstock” as soon as March 17, 2020, a Wednesday blog post highlighted.
The former executive added that his move into crypto and precious metals allows him to move his capital “outside acts of retaliation from the Deep State.” Continue reading “Article: Overstock’s controversial former CEO sold his entire $90 million stake to pile into gold and crypto investments (OSTK)”