/biz/ - Business & Finance

>>54088361
If a broker goes under, they typically get bought out by another bigger broker and assets are preserved. People who think shares all disappear in brokerage accounts are fudding since if shares are just all deleted then there is no MOASS anyways as the shorts get deleted too. Plus since share value adds to a broker's AUM and liquidity, they would WANT to preserve long positions to balance out their liabilities. FDIC only kicks in if nobody else steps in to buy out a bank or broker, which has never happened yet. So realistically, FDIC or share deletion would only kick in if every broker and bank collapses, in which case civilization ends and nothing matters except for gold and silver chads.

What is more likely to happen is brokers and prime banks recall their shares (shorts) to meet liquidity, parties who have lent out shares are margin called and their assets liquidated until they're unable to pay, and then we get a bailout to pay the rest since naked shorts outstrip the value gained from longs rising. They would seek to close naked shorts first over shorts with stocks covered because covered stocks add to liquidity and AUM, it would be retarded to close their own positions held. At that point the indexes themselves might halt the stock, but that only procrastinates the inevitable.

>>19211145
June expired. Now July is the front month and what everyone is looking at. And July is falling atm.

And spoiler, July is setting up another contango. Right now. The tanker play is far from over for short-termers and long-termers.

>>17781595

>>14819943