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The original was posted on /r/Superstonk by /u/xvxlemonkingxvx on 2023-09-16 15:56:54.
Who receives the borrow fees from, let say Citadel, when they "borrow" stock and derivatives? As far as I understand, paying borrow fees is how they legally hold a short position near indefinitely. I also understand they can infinitely produce shorts without locates from their "reasonable ability to find" from Cede & Co.
Does Cede & Co receive the fees? If so, what does a holding company do with that money? I can't find any specifics and that makes me uncomfortable. Talking to my dad the other day about all this, and that was the only topic I wasn't fairly sure about. Where does that money end up? He thinks (not ape, just curious) it has to be a circle jerk back into Kenny's pockets. Paying himself to make money with counterfeit goods. Looking and finding nothing, I'm beginning o feel the same. Any wrinkles?