/biz/ - Business & Finance

2019
>Investor: Hey Balckrock, can you add some shares of GME to my account?
>BR: Sure! Do you want to sign up for lending? We can guarantee returns even if the stock goes down!
>Investor: Why not? Retail may die so guaranteed gains are nice!

2021
>Investor: Wow BR! GME is $400! Can you sell all of my position before it crashes?
>BR: We’re sorry, but you signed up for the lending program. Those shares are out on loan to a guy named Melvin! Don’t worry, he pays a respectable fee for it.
>Investor: Is the fee anything close to what I would make from liquidating my position?
>BR: Heavens no! But it’s about time in the market rather than timing the market right?
>Investor: Fuck you. I want to manage my own assets.

This is why they’re afraid. They’re getting angry calls from lots of wealthy people that want to be at the front of the line to sell, so they’re halting trading at a bunch of brokers. The process is illiquid and has too much friction. They’re pushing XRP sooner because it will save BR from losing clients over a high-paced front end that outpaces the back end.

>>27100407
Picrel says that if they have a default, they NEED to buy those shares from the market. They don’t want to get those shares back at $300 each if they lent them.