151–160 of 318 posts
Earlier quoted context omitted.
Not to really get into this debate, but I will note that "they" is more neutral than s/he.
But not necessarily correct, right? And what is correct? It's apparently whatever the addressee chooses these days, so good luck.
I'm pretty sure they is universally correct? No need to politicize this.
If the SEC has gone through and has accounted for the 34 million in cost to consumers, why are they not having robinhood reimburse the customers for their lost money on the trades and then charging the additional 30 million on top for lying? Why does the SEC take all the money?
SEC doesn't work on behalf of consumers, it works on behalf of the federal government. Robinhood customers are still free to bring lawsuits against the company and those would be heard in courts.
And plaintiff securities class action law firms are undoubtedly drafting complaints as we type.
If the SEC has gone through and has accounted for the 34 million in cost to consumers, why are they not having robinhood reimburse the customers for their lost money on the trades and then charging the additional 30 million on top for lying? Why does the SEC take all the money?
Anytime a company is fined by the SEC it has to post that at the top of their home page similar to how restaurants have t display health scores. Of course it would need to have a plain English requirement.
Bonus points for having web browsers flag such sites as well similar to how they can flag sites for being breached
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Yes, exactly. That's what this submission and charge by the SEC is all about. Is everyone just forgetting the entire purpose of this submission is that Robinhood used pay for order flow to facilitate front running?
All the press release says is: >Robinhood failed to seek to obtain the best reasonably available terms when executing customers’ That could mean pretty much anything.
These facts taken together can not be used to "mean pretty much anything". These facts, along with the additional fact that the SEC is charging Robinhood of engaging in illegal activity, strongly suggest illegal activity involving pay for order flow that resulted in worse price execution to the customer.
If you think that means "pretty much anything" then we can simply agree to disagree on this matter.
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Why is that weird? Attorneys in this are working on behalf of the US Government. If they feel like settling gets the best deal for the government, then they do that.
It can give the feel of extortion. Settle or else. There is quite a window where settling -- even when provably innocent -- is easier/cheaper than facing an agitated prosecutor. Settling has nothing to do with a finding of truth.
On the same token, it's doubtful that the SEC would proceed to charge Robinhood if they knew they couldn't make the case stick in court.
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There are already lots and lots of rules.
They're not really teethed though. I grew up in DC and new plenty of parents who were ex-chief of staffs or whatever and they literally would tell me that they were working for a lobbying firm as a "consultant" because that was a loophole for getting around the "can't join a lobbying firm rules."
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Got it, so, in theory this sets the groundwork for a class action lawsuit?
Robinhood probably has a binding arbitration clause in their contract that prohibits users from joining a class action lawsuit, no?
$65M penalty for $35M in misbehavior. That is how you get Wall Street to pay attention. More like this please!
I know this may be a slap on the wrist for Robinhood, but honesty the SEC is one of the branches of government that I trust almost as much as the FDA. I appreciate the work they do and I hope they continue it.
> the SEC is one of the branches of government that I trust almost as much as the FDA Hm. I made this comment elsewhere but: The SEC has big structural problems. Way too close of ties with the people it is supposed to be regulating. Take the example of this SEC investigator [0] whose boss got a call from one of those Wall Street hedge funds under investigation and suddenly he's fired! Mysteriously, that boss gets a j…
https://www.federalpay.org/employees/securities-and-exchange...
The general purpose of the SEC is to investigate, fine and in general "stop" financial crimes in the financial market. This, in theory, requires said investigators to be smarter than the perpetrators or at least somewhere on par. While these folks are paid really well on average... this isn't "fuck you money" like on Wolf of Wallstreet. Even "poor fuck you money" is better than what they make. While I won't dismiss the need for a lot of attorneys and accountants in their profession, 333 examiners doesn't seem adequate against a $440k average salary industry with 176k employees 2018 numbers (https://www.osc.state.ny.us/sites/default/files/reports/docu...). Unless there's much more overlap than I'm imagining.
I mean seriously, if you're smart enough for the financial industry, you need to have a much higher moral code to take the less than half rate of average salary compared to the people you're investigating. Which I'm not knocking. I always respect people who take a moral high ground stance and try to do some actionable good, especially if it's at a detriment to their own wallet. It's just, expectations need to tempered with their overall capabilities. On top, agreeing with you on structure, what kind of hell do some of these folks experience working in a government environment? How many get salty real fast and get all pissed off from the shit they deal with bureaucratic wise along with shitty pay compared to the industry's employee?
There was a line from Burn Notice that I've always attributed to this, "Fighting for the little guy is for suckers". So yea, can we all really trust the SEC? Maybe... but can you really blame them by too much regarding "issues" granted that most of any industry, especially tech & finance, is about jumping to the next better paying job? I mean think of this scenario, "You're going to get fined no matter what happens today. But I can reduce it by half if a moving box full of cash magically appears on my back porch."