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SIPC Says It Has Serious Concerns About Robinhood's New Product

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Re: SIPC Says It Has Serious Concerns About Robinhood's New Product

#241

Post by whitepoplar »

pascalxus wrote: post #240
whitepoplar wrote: post #211

Earlier quoted context omitted.

Or you can open a Fidelity/Schwab account and buy U.S. Government T-Bills with no transaction costs or markup. 6-month T-Bills are currently yielding 2.54% and they're exempt from state taxes.

but how do those work. do you have to keep buying them every 6 months, or can you just leave it there while it keeps providing interest at that rate? and will those rates continue to go up? mysavingsdirect has for the last 2 or 3 years shown they're commited to staying at the highest rates.

Checking/Savings rates are highly correlated to Treasury yields, so if Treasury yields go down, so will yields on checking and savings accounts.

To answer your first question--if you go with Fidelity, they offer an "auto roll" feature which can re-purchase new T-Bills (or any Treasury/CD) at auction, automatically, when existing issues mature. It's completely hands-off: https://www.fidelity.com/fixed-income-bonds/fixed-income-too...

Re: SIPC Says It Has Serious Concerns About Robinhood's New Product

#242

Post by doctorOb »

plopz wrote: post #225
conanbatt wrote: post #202

Earlier quoted context omitted.

I prefer the chikken wings, which are probably wings but cant be legally called chicken.

You should try the Frozen Dairy Dessert.

Or processed cheese food [1]

[1] https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFR...

Re: SIPC Says It Has Serious Concerns About Robinhood's New Product

#243

Post by gammateam »

avar wrote: post #237
gammateam wrote: post #146

Earlier quoted context omitted.

So confusing: Iceland is in the Schengen Area, and the EEA, but not the EU or Eurozone

This helps: https://upload.wikimedia.org/wikipedia/commons/3/3c/Supranat...

needs ECJ jurisdiction, and ECHR. literally unplayable.

but for real, country names would be helpful too

Re: SIPC Says It Has Serious Concerns About Robinhood's New Product

#244

Post by pianom4n »

pembrook wrote: post #141
binarymax wrote: post #65

Earlier quoted context omitted.

I remember (but cannot find a citation) in ~2005/6 AIG was offering 4% saving accounts. I'm having deja vu all over again.

That’s because interest rates were around that level at the time and the bank was also getting paid that much to hold your money. It wasn’t a conspiracy. Consumer savings accounts had absolutely nothing to do with the crisis. Like, on the list of “things that caused the crisis,” they would literally be dead last. Did you know your parents had savings accounts that delivered 10% interest at one time? Look up historica…

> Consumer savings accounts had absolutely nothing to do with the crisis.

That's just not true. A significant contributor to the mortgage crisis is that banks loan out savings that are backed by the government. Savers deposit their money with banks even if those banks are underwriting risky mortgages

Re: SIPC Says It Has Serious Concerns About Robinhood's New Product

#245

Post by pbreit »

DevX101 wrote: post #11

> “I disagree with the statement that these funds are protected by SIPC,” Stephen Harbeck, president and chief executive officer of SIPC How the hell did this product get launched?

First, it hasn't.

Second, the SIPC boss probably is not in the best position to understand how RH is setting it up. Harbeck seemed unaware that the "cash" in RH accounts was actually going to reside in investments like Treasuries and thus be covered.

Re: SIPC Says It Has Serious Concerns About Robinhood's New Product

#246

Post by pbreit »

luckydata wrote: post #29

I don't understand the infatuation silicon valley has of Robinhood. Take almost every possible bad idea about personal finance and put them in an app, you get Robinhood. The business model is also suspect, I think there's a little more that hasn't been disclosed and I suspect the chase for cash started when the crypto currency fad started deflating in a hurry. I wonder if Robinhood is hiding something bigger under th…

To a huge number of people Robinhood is taking all the GOOD ideas and putting them into an app.

Re: SIPC Says It Has Serious Concerns About Robinhood's New Product

#247

Post by pbreit »

jartelt wrote: post #66
kinkrtyavimoodh wrote: post #38

Earlier quoted context omitted.

> bad idea about personal finance Such as?

The vast majority of people should just be maxing out their 401k and investing in index funds. They shouldn't be using Robinhood to buy individual stocks, buy cryptocurrency, or do options trading.

You can buy Vanguard and other ETFs in Robinhood. For free.

Re: SIPC Says It Has Serious Concerns About Robinhood's New Product

#248

Post by ineedasername »

PaulHoule wrote: post #213
hn_throwaway_99 wrote: post #13

Through all of this I can't help but be reminded of the 2008 financial crisis and think "this is not going to end well." One part of that crisis was Icelandic Banks making a huge push for savings all over the UK and other parts of Europe ("IceSave") with the promise of better interest rates. When it all went belly up those savers realized these Icelandic banks were not quite the same thing as UK banks and Iceland ref…

SIPC insurance is entirely different from FDIC insurance. FDIC insures the value of your deposits. SIPC covers the case where your broker or mutual fund cannot keep operating (eg. pay the help) In a case like that all of your stocks and bonds are still there and have most of their value, but you can't get at them because there is nobody to process the transaction. Somehow the holdings need to be transferred to anothe…

You seem to be indicating that SIPC wouldn't protect the liquid (cash) assets in the account, only reunite you with your stocks/bonds/etc. Based on the SIPC site [0] this is incorrect, and they get you your cash as well: " SIPC works to restore to customers their securities and cash that are in their accounts when the brokerage firm liquidation begins"

[0] https://www.sipc.org/for-investors/what-sipc-protects

Re: SIPC Says It Has Serious Concerns About Robinhood's New Product

#249

Post by bdibs »

bduerst wrote: post #229
yawz wrote: post #153

Earlier quoted context omitted.

This works in certain industries (e.g. Uber), but not in others, especially heavily regulated ones.

Didn't Uber's self-driving car hit and kill a jaywalker?

I think he/she was talking about them avoiding taxi legislation, not the self driving branch.

Re: SIPC Says It Has Serious Concerns About Robinhood's New Product

#250

Post by ceejayoz »

doctorOb wrote: post #242
plopz wrote: post #225

Earlier quoted context omitted.

You should try the Frozen Dairy Dessert.

Or processed cheese food [1] [1] https://www.accessdata.fda.gov/scripts/cdrh/cfdocs/cfcfr/CFR...

Try "potted meat food product" on for size.

Ingredients: Mechanically Separated Chicken, Beef Tripe, Partially Defatted Cooked Beef Fatty Tissue, Beef Hearts, Water, Partially Defatted Cooked Pork Fatty Tissue, Salt. Less than 2 percent: Mustard, Natural Flavorings, Dried Garlic, Dextrose, Sodium Erythorbate, Sodium Nitrite

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