Breaking news: the federal reserve is now proposing sweeping new rules regarding trading and serving after an ethics review, banning spouses and members from specific trading banning of derivatives, short sales or use of margin one year to sell impermissible assets. In case you're curious. The prosecution made impermissible of too bad to be allowed. There we go there, we go two, oh that's a hell of a word to throw into this one year to sell too bad to be allowed assets.

So basically, what this is saying is the federal reserve is now proposing rules to finally may i add, finally regulate the trading that takes place with uh, with with at least the federal reserve, not proposing sweeping new rules regarding trading and serving after an ethics review uh. Let's just dive into what each of these would mean so banning spouses and members from specific trading. This will regard uh people, like perhaps nancy pelosi now as nancy pelosi as bad as every other person on planet earth, every other, congresswoman or congressman on on planet earth. No right, there's, there's worse out there, there's better out there, whatever it's an example.

She gets by with her trading by utilizing her husband, her husband makes trades for which is her spouse right, a spouse, doing specific training for her with the information that she brings home from work every day, honey, i'm home, i'm not stuck in the dryer. Let's talk about, let's talk about nvidia today, let's talk about roblox today, huh. Let's talk about google today huh right, oh interesting, stuff, honey. That was great.

I'm glad that you shared this. This information hey, even though we're married, even though you work for uh for congress. You know it's, i think, uh there's, no, really! There's no problem. I mean you're, not doing it.

If i trade the stocks, you didn't touch them, you didn't touch the stock, so we should be absolutely fine right, it should be, it should be gucci luchy gucci and he starts trading that that would be basically ban. You'll get rid of that sort of junk, which is good, obviously, there's a direct conflict of interest there. It's pretty obvious, there's a conflict of interest there, uh and then next up is this, and derivatives is massive. There's lots of politicians, congressmen, uh federal reserve uh seats that trade derivatives uh as a tool in order to leverage massive massive gains that can happen and still not have any impact unless they're real penalties realize we'll dive into that.

I'm going to continue with this and i'm actually going to talk about that banning of derivatives, short sales or use of margin. You know these are pretty self-explanatory: short selling, a stock they're trying to ban that use of margin, so you won't be able to leverage money against your own settled cash. So if you wanted to, if you had a million dollars and you had that all invested and you wanted to use a million dollars a margin, you'd have a two million dollar position. They would ban that as well one year selling permissible assets, meaning if they are currently holding any assets, and this does end up getting passed uh.

They will have one year to get rid of those unexcusable too bad to hold assets, uh that these different people uh within congress, uh, maybe not congress, but at least the federal reserve are holding - and that brings me back to the point that uh was just brought Up by realize right, uh penalties, so let's just do some quick basic math cereal securities has agreed to pay a 700 000 fine defender over allegations that have violated funeral rules that protect customer orders, promote market transparency and encourage quote competition. I think this is as plain cut and dry as it possibly gets. I mean literally citadel uh has stated themselves in this by agreeing that they have committed to not protecting customer orders, not promoting market transparency and not encouraging quote competition seems pretty cut and dry. What are they gon na find for right? Those are pretty egregious acts pretty egregious.

It steals money from you in the grand scheme of things i don't know 700 000 wow. That seems like a pretty big number. Doesn't it well? Actually, if the ceo of citadel ken griffin is worth nearly 30 billion dollars, oh wait. Wait: the 51 year old billionaire is the founder and ceo of citadel, a hedge fund that manages 30 billion dollars of assets and has he has a net worth of 12 billion dollars? 700.

000. Nada. Let's just take. Let's just take ken griffin, the smaller number 12 billion dollars we'll take a calculator 700 thousand dollars divided by 12, 0 000.

000.. That is point zero, zero, zero, zero, five percent of ken griffin's net worth that's the equivalent of. If, if you have a thousand dollars in your pocket - and somebody said, hey, i'm gon na find you two cents. I'm gon na i'm gon na find you two cents for being a piece of and not holding up to the rules and regulations that you must abide by.

Yeah fine take my two cents, i'm gon na. Do it again tomorrow. That's the problem right, there's! No real repercussions for things of this nature. What i would basically call it is pay to play.

What this reminds me of is when you sit down at a blackjack table and you have auntie you've got auntie on the blackjack table because you're paying to play you got to give you got to give the casino it's tax right, oh sure, i'll give you 50 Cents tax, if i think i'm gon na make a million dollars whatever i don't, really give a that's what happens with these congressmen with with citadel with all these big boys, there's no repercussions, i mean, if you put it into that perspective, there's really no arguing how Stupid it is that that's all the all the fine and all the repercussions that they have. I mean it's pretty self-explanatory. It's crazy! It's absolute madness! Let's come back over here to uh to what sort of took place last night that took twitter by storm. I had a hard time finding any articles to confirm this uh.

I actually got this sent to me later, so i will show you this doj tends to be pretty quiet. I guess so take over the grain of salt, but it appears morgan stanley could have had some sort of ties with citadel if this is true, pretty wild stuff man and i'm gon na right now come over to my messages and download the actual article so that I can share this with you guys, uh, because this is actually some pretty cool stuff, all right, more standing relationships across wall, street's snared in probe, doj, seeks info on executives at citadel element and others names, show probes scope, but don't indicate their targets. That's a pretty bad typo. I don't know why you say they are.

I feel like this happens way more frequently than it should, but that should say there instead of uh, they are. I i don't know. I don't really know what to say about that uh, but nonetheless, what this is implying is that citadel could have had ties with uh. Obviously, morgan stanley during this wall street uh probed snare uh snared in probe right, it's pretty crazy stuff.

Reading on morgan stanley and pascal intertwined in a sprawling us probe, and whether bankers are improperly tipping off investors to stock sales, large enough to send prices swinging according to people with knowledge of the inquiries, block trading is one of few wall street businesses where relationships still Drive the flow of deals and other ties spanning a wide range of firms are getting picked apart by investigators. No one has been accused of wrongdoing, yet what this is basically saying is they are they're investigating uh, morgan, stanley's ties at the very least, a form of market manipulation, corruption, which would be block trading, we'll go on to explain that here in just a second, the Equity capital trading universe is one of the last realms of the super high end, whining and dining worlds and finance to james blah, blah blah blah blah pass. These freaking phone contacts and some of morgan stanley's key clients are among a roster of more than a dozen executives at other investment firms and banks whose communications are being scooped up by the doj communications. The doj is going to be looking into some juicy stuff.

The list of people whose communications are being sought ranges from executives at prominent wall street hedge funds, such as andrew uh at citadel survey, surveyor capital and john dorfman at element capital to money managers at smaller firms, focusing on block trades, including executives. So it's pretty interesting. It's interesting to see - and why is this important is because, if there's a tie right, if let's say that, let's say that blackrock and citadel were conspiring together to have some form of a relationship in order to commit to block trading, and they did this together. What makes that sort of happen? You know what happens again of all that.

Well, very obviously, you see citadel could have added to the market, manipulation that took place. It's a big deal, that's a huge deal. Does it mean necessarily that we're going to catch we're going to catch citadel red-handed? No, if we do catch them red-handed, will they feast will they face absolute damning repercussions? You'd hope. So i mean the department of justice is probably about as close as you're gon na get to getting the repercussions that you desire out of uh manipulation, corruption and fraudulence, but we're gon na have to wait and see what that actually ends up.

Looking like.