Citigroup, Goldman Sachs, BofA restrict shorting on GME, adjust their “risk controls”. “Institutional investors now face higher collateral reqs” – June 4, Bloomberg

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u/strong-ape-bro posted by u/Lucky2240	Reddit

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His thoughts:

” Citigroup, Goldman Sachs, BofA restrict shorting on GME, adjust their “risk controls”. “Institutional investors now face higher collateral reqs” – June 4, Bloomberg

This is freaking huge.

3 of the biggest prime brokers are pulling the plug on 1) shorting GME and 2) increased collateral requirements.

Bloomberg article: https://www.bloomberg.com/news/articles/2021-06-04/wall-street-banks-rein-in-hedge-funds-short-bets-on-meme-stocks

For those unaware:

Bank of America is the prime broker for 96% of Citadel’s “activities”.
BofA recently terminated analyst coverage of GME.
On June 4, BofA also restricted short positions on GME and increased collateral requirements for existing positions.
Citigroup, Goldman Sachs did the same.