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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

#151

Post by bsanr2 »

onion2k wrote: post #140
uncledave wrote: post #129

Earlier quoted context omitted.

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…

They were also caught discriminating against... well, you can probably finish this sentence.

https://www.reuters.com/article/us-santanderbank-mortgages-i...

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

#152

Post by csunbird »

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…

This looks like a preparation for defense against the lawsuit(s) for disabling trading for a couple of stocks. They will use the "We were not manipulating the market, we were trying to stay afloat!" excuse.

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

#153

Post by dustinmoris »

celticninja wrote: post #119
dustinmoris wrote: post #107

Earlier quoted context omitted.

Starling or Monzo?

Starling Starlink is the space internet from Musk

Auto correct what can I do.

Of course I meant Starling, they were the first challenger bank to offer business accounts as well and I’m very happy so far.

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

#154

Post by faffe »

thefounder wrote: post #91
deepGem wrote: post #72

Earlier quoted context omitted.

I doubt users will lose the stocks. This will be really weird. Worst case, you will be given some time to transfer your stocks to another brokerage and perhaps RH will make that process a lot faster than the nominal 2-3 days it takes now.

Well something weird happened already so I dobut it's that hard for them to loose your shares

In practice, share lending is backed by (over)colateralization ( e.g cash or highly liquid short term debt). The worst case for you would be to receive cash instead of the he stock itself.though this doesn't give relief to the broker not to fulfill its obligations.

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

#155

Post by jjeaff »

cma wrote: post #117
bluquark wrote: post #85

Earlier quoted context omitted.

Robinhood is a SIPC member. It rarely comes into play, but my understanding is that SIPC is there to ensure securities get back to their rightful owner in the event that something weird happens to the brokerage.

They are only covered up to $5 billion for the entire brokerage industry, it may be like 2008 and they all get turned into FDIC insured banks over night if tons of margin accounts fail.

And a max of $100k per account.

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

#156

Post by beagle3 »

tonfa wrote: post #62
amscanne wrote: post #54

Earlier quoted context omitted.

Retail investors lost millions because of an inability to buy?

I guess the theory from some people is that if they could have kept buying then the stock would go up (and trigger the squeeze). Not sure I buy it (esp with the amount of call options that are just going to magnify the move up but also the move down).

This has been happening every day for a few days before the stop (perhaps a few weeks at a lower rate).

Why don’t you “buy it”?

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

#157

Post by esyir »

Clewza313 wrote: post #67
bredren wrote: post #36

Earlier quoted context omitted.

I had a neutral to negative view toward this product before today. In part due to the product’s UX having to change after a customer killed themselves and cited the app in their suicide note. [1] I noticed that before but bad stuff happens, I had not heard of further issues and it was likely a series of contributing factors. That said, this bind broke the entire concept of the branding of the product. I’d never insta…

They've lost the trust of people YOLOing on meme stonks. I'm sure it's a noisy part of their userbase, but still only a part. It would be interesting to see stats on how many people use RH for long-term investments (buy and hold, DCA, etc), and how many use it as a form of gambling (day trading, leveraged options etc).

That's like 50 percent of their user base apparently, according to reports that 50 percent of Robin Hood accounts own gme.

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

#158

Post by throwaway23819 »

danr4 wrote: post #143
throwaway23819 wrote: post #95

Earlier quoted context omitted.

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.

Have you seen the CNBC interview [1] with IBKR chairman, basically saying "once the stock goes back to the price we want we'll let retail investor trade it again"? [1] https://www.youtube.com/watch?v=7RH4XKP55fM

Just saw the interview, looks about what I'd expect from IBKR and why I use them.

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

#159

Post by throwaway23819 »

throwawaaaaay17 wrote: post #134
throwaway23819 wrote: post #95

Earlier quoted context omitted.

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.

Does Fidelity have an API?

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

#160

Post by ilikerashers »

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've got Revolut and Barclays, I confess I don't mind the Barclays App too much. Lets me do anything I want to do and I don't like Revolut trying to push insurance and crypto.

I worked in HSBC for 6 months a few months and their IT systems are scary. It's a patchwork of various international banking systems where each one has different views and funding.

They are completely incapable of coordinating such a political landscape. I made some cash and ran away from that trainwreck as fast as I could.

There are lots of consultancies embedded making good money out of the confusion.

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