Many brokerages restricted GME and other stock trading, why is only Robinhood in the spotlight?

Jan 30, 2021 14 Comments

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?

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  • 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.
    Jan 30, 2021 3

  • This comment was deleted by original commenter.

  • 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.
    Jan 30, 2021 1
    • The clearing houses raised the requirements because they dont want the next Lehman crash.

      Blame the SEC for not changing T+2 settlement delay.
      Jan 31, 2021
  • New
    pizzaButt

    New

    pizzaButt
    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.
    Jan 30, 2021 1
  • Apple
    lJuy24

    Go to company page Apple

    lJuy24
    They were the first. And most small scale retail investors are using Robinhood.
    Jan 30, 2021 1