Clearinghouses raised collateral 10x, and many brokerages were unable to open orders, but seems like everyone only points finger at Robinhood What's the reasoning?
I agree that it's a bit of an unfair spotlight. While I don't condone their actions and they should have been better prepared I think part of the issues were deeper rooted. They were covering their own asses which obviously isn't admirable but I don't think it was some grand scheme with the Hedge funds. If anyone should be getting negative press it's the clearinghouses.
The clearing houses raised the requirements because they dont want the next Lehman crash. Blame the SEC for not changing T+2 settlement delay.
If Vlad would have come clean with honest answers in his interview I think people would understand. However, because he denied liquidity problems, then they go raise 1b emergency funding the next day, basically killed any honest argument from him. Not sure if citadel is involved at all, but being arms length away from the firm that bails out the firm who made the awful short bet...when you’re not telling the truth...what are we to believe? Now that he’s lied...no trust. No trust means a run on Robinhood like a classic run on the bank. Get your money out ASAP...it may be insured but it’ll get frozen for a while before it’s release by the regulators when Robinhood declares bankruptcy. Not an if, it’s a when. I’m 100% convinced of this.
I agree on the first part of this (Vlad did an extremely poor job at communicating and looked like a deer in headlight), but I disagree with your last statement. N Your money's fine, RH will do ok, and nothing will happen.
For the company to demonstrate trust now, he should be removed from the position of CEO
Noobs use RH
Please use Fidelity folks. Walk away from the nightmare that is Robinhood
No, they were hiding many things and now trying to blame on clearing houses. 1. They could have communicated better and earlier. They waited for the market open and banned the stocks. How can they not know people would get angry? I am sure they were not informed the last minute given there were many restricted stocks. 2. Besides GEM and AMC, the stocks they banned were highly shorted and were up at least 100% the day before. Like SNDL and CTRM. Anyone would think they were trying to help the hedge funds who heavily shorted those stocks. Also, Why would they even ban IPOE? 3. The GME battle didn’t just happen overnight. It was since the beginning of January. How can they not plan for anything? Or they just don’t know how to manage a brokerage firm? 4. Last but not least, you can actually treat the limit by buying a call option and exercise 100 shares right away.
^this
India
Yesterday
900
Any Indians Think Kashmir Should be Independent?
Tech Industry
1h
197
Is BYD Going to kill Tesla dreams
Tech Industry
Yesterday
3019
I do tech screens at Google. AMA
Cars
Yesterday
1556
Cyber truck killer: Chinese version of EV truck
India
9h
2379
Why is it so G*damn difficult to move money out of India
They were the first. And most small scale retail investors are using Robinhood.
Ameritrade was the first