It Jones, Michael, Congress discussed on Balance of Power
More than 2700, journalists and analysts and over 120 countries. I'm more prompted. This is Bloomberg. Crumpton. Thank you so much. Emily Wilkinson time Keenan for David Weston. I said earlier today, a couple hours ago or so. The idea of speaking to people informed about all of this stuff on game stuff. We talked to Lawrence Tab of Bloomberg Intelligence on Wall Street in particularly New York. Wall Street is absolutely definitive about the mechanisms that are out there. The sausage making of the Wall Street machine. We do that again untraded. Ng Michael O'Rourke is chief market strategist It Jones trading. You don't know the name Jones trading. You should know that their job is to get out of the way and execute large black trades to the benefit of their clients. They go back a Jew zillion years. They did block trades for George Washington, right after the revolution. Michael O'Rourke joins us this morning, Michael, What is it? Ben? Like it? Jones trading in the last 48 hours. You guys have seen all this before, as I am, But what's the distinction this time? I mean, it's been pretty remarkable, Tom. Obviously, a lot of these names start trading at four in the morning. Um so we you know, we were basically man 24 24 6. I think it is. So, um, We have guys trading at all times for our clients and it Z been like I said, pretty remarkable. We've been active. It's been busy. We are seeing a lot institutions. Trying to manage the situation and, you know Take him take advantage of opportunities when they're there, but also be a little bit defensive. And, you know, because I think it was a risky environment. I don't want to get you in trouble Your general counsel and ruin your Friday, but I'm going to ask Are you seeing evidence that the sophisticates are going long on these various shorts? I, You know, I wouldn't say we are. Um, but, you know, I don't see a lot of that. You know, I don't see the day to day trading action as more of Ah, I talked to the client about what's going on the market. But I don't see the orders, basically so That's a nice out. I'm like I was a rude question, and he gave me the answer was a non answer. Emily Michael O'Rourke really succeeded at that. Well, I also want to ask Michael a little bit since this is balance of power, and we do try and combined the markets and Washington Michael, you know, several House and a Senate panel have already said that they're going to begin investigating everything we've seen in the markets in the past week. What if anything, is Congress's role here? I think they're right. I know Miss Elizabeth Warren make comments yesterday. Just about a lot of has to do with the integrity. The markets. Um there's been a lot of issues building up for years. I think earlier in this week during the FOMC press conference, Mike McKee nailed it. When he asked the chairman chairman Powell about Red T margin requirements is the Fed was considering it. And obviously, Chairman, Palace said No when he turned power, it's It's several questions about this. Basically saying the stock market wasn't his responsibility. When it comes to financial stability is we're about the banking system. And the feds. You know, responsibility is Mars requirements. Um, you know, I would expect he should have to answer in front of Congress as well, because obviously a lot of yesterday's dislocation. Was different firms imposing margin requirements on their clients to protect themselves and their other clients were not involved in this speculation. So I think I think this is something building for quite some time. We've lost a lot of market's pricing mechanism, and I think Congress should step in and really review what's going on here because because this is not a healthy market environment. So when Congress does get these individuals at these hearings in front of them, what kind of questions do lawmakers need to ask? What do they need to be focused on? I think you know, I think a lot of it is the social media aspect of this whole phenomenon is pretty remarkable when you talk like I've written about in the past. Obviously, social media is basically changing society now and whether it's the events that we start politically in Washington or events we're seeing here. Guy work for brokers industry in the brokerage industry were so highly regulated everything you know everything I say, um, They have to be cleared every message. Every communications log. Um, I've seen a lot of this information about the stocks on social media that are encouraging people to buy things. And I mean, the primary example is this AMC? Um Entertainment, the movie theater company where people are trying to swim shorts in this, But this company has press releases out this week, you know, saying that they sold 230 million new shares. And then you had silver Lee come out, convert their convertible that another 44 million shares out there and you don't see that aspect of it or the real news getting disseminated on social media. So people reacting to looking at social media for their news. It's a really it's right bad information. Michael Rock very quickly around the time I could go on for hours with you with this wonderful trading perspective. Do you just just assume that Dtcc is going to come back to the well and demand more money? You know what? I don't know. I actually don't think that's probably the case because I think I think everyone else is acting responsibly and everyone's trying to shore their books up. So I think they kind of made their statement made their move yesterday. I think once you see that people tend to step into line And hopefully we don't have any issues. Michael Rocks, Thank you so much. Jones Trading greatly appreciated today. Emily from near the Gucci store in Washington emails in and says Tom, We're not talking about politics, so I'll fix that here quickly, Michael wrote Jones trading folks goes so far back. About the way it used to be and how they have modernized to move forward here to create value. You know, Emily, I really wonder here what Washington's gonna do when they need to get into the obscurities of the dtcc. The people that are the clearinghouse Usually there's a couple lawmakers who know exactly what's going on, and everyone else relies on their stuff. Wait in the lawmakers rely on to other staff members who are 25 years old, right? 24 6 24 something like that. We're gonna continue this discussion much, much.