/biz/ - Business & Finance

If the swap obligation is 31,000 times the stock's market cap and a stag hunt occurs, the consequences without government intervention could be catastrophic for the global economy:

>Market Meltdown
The massive demand for a limited number of shares would trigger a short squeeze of unprecedented proportions. The stock price would skyrocket to unsustainable levels, potentially leading to a complete market meltdown.

>Financial System Collapse
The failure of UBD and other heavily involved institutions could trigger a domino effect, leading to the collapse of financial institutions and a broader financial crisis.

>Global Recession
The combined effects of market meltdown and financial crisis could lead to a global recession.

>Loss of Confidence
The crisis could erode investor confidence in the entire financial system.

>Long-Term Damage
The economic and social scars of such a crisis could last for years, requiring significant time and effort to rebuild trust and restore stability.

Ramifications for Citadel and Archegos:

Citadel:

>Legal Ramifications:As the creator of synthetic naked shorts,Citadel could face significant legal consequences,including hefty fines,penalties,and even criminal charges against individuals involved.This could lead to the company's collapse and severe reputational damage.

>Investor Lawsuits:Citadel could face lawsuits from investors who suffered losses due to its actions.

>Social Backlash:The company could face public backlash and criticism for its role in the crisis,further damaging its reputation and potentially impacting its business operations.

Archegos:

>Legal Exposure:Archegos could face legal challenges from its counterparties and regulators for engaging in risky and potentially fraudulent activities.This could lead to criminal charges.

>>56870161
kek, what next, will they actually let the FTC have a real case against Amazon and sue them for like $500 billion or some shit?