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Robinhood, in Need of Cash, Raises $1B from Its Investors

nytimes.com

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Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#131

Post by optimalsolver »

onion2k wrote: post #96
peytn wrote: post #37

Earlier quoted context omitted.

I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.

I’m not keeping my money with a financial institution that lies to me. I know for a fact my bank lies. They've been fined hundreds of millions of dollars for money laundering (it's HSBC). A few years ago I looked in to moving to a more honest bank, but I couldn't find one that also met basic criteria like having access to cash points in the UK and having a half decent mobile banking app. Literally every major bank th…

Nationwide?

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#132

Post by Gene_Parmesan »

deepGem wrote: post #112
ajsharp wrote: post #24

"To continue operating, it drew on a line of credit from six banks amounting to between $500 million and $600 million to meet higher margin, or lending, requirements from its central clearing facility for stock trades, known as the Depository Trust & Clearing Corporation." Non-zero chance had they not haulted trading on those symbols they would've been insolvent by close of trading today, depending on the size of the…

OK, how hard it is to increase your credit line in real time. We are not talking 100s of billions here. Had RH reached out to the likes of Chamath or Musk, they would have gotten a credit line in minutes. This is no excuse for screwing retail investors. Horrible management. I mean, I am some random dude who can think of these, these are professionals running multi billion dollar enterprises, c'mon.

If you are just some "random dude," then perhaps there are issues with your suggestion that the professionals know about and you do not?

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#133

Post by [deleted] »

ajsharp wrote: post #24

"To continue operating, it drew on a line of credit from six banks amounting to between $500 million and $600 million to meet higher margin, or lending, requirements from its central clearing facility for stock trades, known as the Depository Trust & Clearing Corporation." Non-zero chance had they not haulted trading on those symbols they would've been insolvent by close of trading today, depending on the size of the…

[deleted]

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#134

Post by throwawaaaaay17 »

throwaway23819 wrote: post #95
peytn wrote: post #37

Earlier quoted context omitted.

I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.

This is why I prefer my money be with IBKR. I already know when it comes to volatility, they are going to choose IBKR over my account which is good because usually "my account" is fine but its the others who are doing really crazy things. I know IBKR will be around in the morning. That's why I love them.

I am a big fan of IBKR, but if you want someone who will be there in the morning... Pick someone bigger. Fidelity, for example, is Too Big To Fail. They will get bailed out if something happens. Not 100% sure that Interactive brokers will be.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#135

Post by uxcolumbo »

onion2k wrote: post #96
peytn wrote: post #37

Earlier quoted context omitted.

I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.

I’m not keeping my money with a financial institution that lies to me. I know for a fact my bank lies. They've been fined hundreds of millions of dollars for money laundering (it's HSBC). A few years ago I looked in to moving to a more honest bank, but I couldn't find one that also met basic criteria like having access to cash points in the UK and having a half decent mobile banking app. Literally every major bank th…

What about this bank?

https://www.triodos.co.uk/

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#136

Post by forrestthewoods »

anticristi wrote: post #75
sudofail wrote: post #66

Earlier quoted context omitted.

The Big Squeeze

Darn, that name is already taken. :( https://www.imdb.com/title/tt0115680/

Movie titles are not protected. This is why there are so many remakes when the exact same name. No licensing fee required.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#137

Post by karambahh »

onion2k wrote: post #96
peytn wrote: post #37

Earlier quoted context omitted.

I’m not keeping my money with a financial institution that lies to me. End of story. Transfer initiated on my cash, and I’ll deal with moving stocks in the morning.

I’m not keeping my money with a financial institution that lies to me. I know for a fact my bank lies. They've been fined hundreds of millions of dollars for money laundering (it's HSBC). A few years ago I looked in to moving to a more honest bank, but I couldn't find one that also met basic criteria like having access to cash points in the UK and having a half decent mobile banking app. Literally every major bank th…

I have the same issues with HSBC in France.

Calling their app "decent" is charitable to say the least.

The only good part is the call center, where operators are actively trying to be helpful.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#138

Post by loycombinate »

So, every broker is on margin with DDTC, they don’t have to have 100pct cash for the dollar amount of the buy orders they send to DDTC, as long as they will have the cash in 2 day. Some brokers like fidelity have hoards of 401k money and more likely to have 100pct cash for their orders. Trading brokers like IBKR RH keeps the minimum possible amount of cash with DDTC, and their automated systems adjusted up the minimum.

This is more or less like the futures market, except futures trades settle at end of day (when CME closes for an hour at 5pm, and next day starts at 6pm lol) and DDTC is the equivalent of CME

Who’s irresponsible here? DDTC for their lax cash requirements? Individual brokers that only keeps the minimum required cash? Futures cash requires 10pct or less, but no futures trader would only keep that much in their account, unless they don’t mind being wiped out and liquidated at end of day settlement (and then deposit more money the next day to trade again). Brokers cannot risk being wiped out at all.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#139

Post by qeternity »

dmichulke wrote: post #43

Not sure I understand: High volume causes sudden operating expenses up to a billion? Like, they're launching more EC2 instances? Or is that because they suffer from slippage? And if so, why don't they adjust the spreads? And if it's slippage, why would they still allow selling but not buying? Color me skeptic, but this makes no sense. For now I believe they just come up with some story to mask their obvious, IMO crim…

It’s not for expenses, it because stocks don’t actually settle (i.e. exchange cash for shares) until a few days later. But Robinhood lets customer trade again immediately.

They are financing this turnover. When volumes go huge and turnover increases, they have a lot more capital tied up in this process.

Re: Robinhood, in Need of Cash, Raises $1B from Its Investors

#140

Post by onion2k »

uncledave wrote: post #129
onion2k wrote: post #96

Earlier quoted context omitted.

I’m not keeping my money with a financial institution that lies to me. I know for a fact my bank lies. They've been fined hundreds of millions of dollars for money laundering (it's HSBC). A few years ago I looked in to moving to a more honest bank, but I couldn't find one that also met basic criteria like having access to cash points in the UK and having a half decent mobile banking app. Literally every major bank th…

Santander is 100% less shit than HSBC. That’s my only input. I’m sure someone is better but their front end services are mostly fit for purpose. Really diversifying your funds across multiple banks is a wise move. I’ve got Halifax, NatWest, Santander and HSBC accounts still.

Santander were fined £32m for failing to deal with 40,000 accounts when people died. (https://www.fca.org.uk/news/press-releases/santander-uk-plc-...). They were also fined £58m for failures around consumer credit (https://www.ftadviser.com/investments/2019/02/27/santander-h...). In the US Santander paid out $550m because of dodgy car loans (https://www.reuters.com/article/us-usa-autos-lending/santand...). That's from one Google search for "Santander fined".

This is the problem though. I'm still with HSBC because, while HSBC is pretty terrible, the rest of the banks are also terrible.

On the flip side one of the heirs to the Santander empire tried to smuggle a Picasso out of Spain on his yacht, which is kind of cool... https://news.yahoo.com/santander-heir-gets-44m-fine-20351628...

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