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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

#251

Post by comboy »

onethought wrote: post #186
Closi wrote: post #74

Earlier quoted context omitted.

An inability to buy means an inability to squeeze the short harder, and depending on how hard you have squeezed that can affect the overall success of the squeeze. Also they apparently forced sale on some accounts, which combined with an inability to buy more, definitely affected stock prices.

But you won’t lose. Right?

Imagine buying a lottery ticket from me. I run the lottery. I print it out, look at it, oooh, you know what, I can't sell you this one. Of course you don't need to pay. Goodbye. Did you lose money?

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

#252

Post by shellac »

uxcolumbo wrote: post #135
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…

What about this bank? https://www.triodos.co.uk/

Supposedly good (I know someone who works for them). However, bizarre fact:

> The bank was founded as an anthroposophical initiative and continues to honor the work of Rudolf Steiner as the inspiration for its approach to banking.

As far as I know they don't routinely bury cow horns to magically improve returns.

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

#253

Post by MaxBarraclough »

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…

> He certainly didn't help it by going on TV and lying about their liquidity issues.

Aren't there laws against lying to investors?

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

#254

Post by kryogen1c »

prohobo wrote: post #243
cced wrote: post #242

I don’t understand how all of a sudden the shift was made onto the insolvency of RH and that the discussion is less about the original conditions that led up to this. I just finished watching a video from Louis Rossmann [1] as well as one from Bruce Fenton [2]. In his video, Rossmann covers the technicalities and systems behind actually __making__ a trade with an app like RH. The videos were very informative and I le…

To be honest, it doesn't really matter. This isn't about whether Robinhood technically must or must not do what they're doing, but that the system is setup in such a way that all these claims of "supporting the people" are fundamentally 100% bullshit. Robinhood tanked their credibility by letting the mask slip and people are on that like hyenas because of the irony. Really though, the focus on them is a distraction f…

> these claims of "supporting the people" is fundamentally 100% bullshit.

what a world where a free platform takes an action to stay solvent and in business and its a bullshit claim that theyre helping their customers. i guess they shouldve done the more helpful thing and gone bankrupt, illegally allowing trades they cant cover.

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

#255

Post by robotmay »

kmlx wrote: post #199
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…

i've used: 1. revolut - these guys are complete jokers. closed after being asked to provide the proof of funding 3 times in 3 months. 2. hsbc/first direct - somewhat decent. but i only use it to top up my other accounts. i try to avoid them, as they're just too big. 3. starling - simple, no-nonsense banking from a startup. 4. revolut business - had my account closed down by the "bank" because they didn't want my busi…

I can second the problems with Revolut. Weird and dodgy, and they spend every second of your use of their app trying to sell you shitty addon services like mobile phone insurance.

Starling, however, has been magic. I swapped my primary banking over to them and the only issue I've had is their dislike of rooted phones. That's only a minor inconvenience every few months when I forget to upgrade Magisk before the Starling app, though.

Transferwise I've used many times to transfer money for larger purchases in Europe. No complaints, but haven't tried the banking side of it.

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

#258

Post by drcongo »

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…

You might want to look a bit closer at Monzo, there was an entire episode of BBC's Watchdog [0] about them closing accounts and keeping people's money. Mine was frozen for well over a year with about three grand in it, no explanation, no apology. I only got it back in the end by involving the financial ombudsman via a website [1] specifically set up to help people who Monzo have scammed, because there are literally tens of thousands of them. Even then, no apology, no explanation - just an email one day telling me they were closing my account but at least giving me the option to transfer my own money out.

[0] https://www.bbc.co.uk/programmes/articles/2qS0HM6nBkcPMx0W8t...

[1] https://www.resolver.co.uk/freeadvice/companies/monzo-compla...

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

#259

Post by prohobo »

kryogen1c wrote: post #254
prohobo wrote: post #243

Earlier quoted context omitted.

To be honest, it doesn't really matter. This isn't about whether Robinhood technically must or must not do what they're doing, but that the system is setup in such a way that all these claims of "supporting the people" are fundamentally 100% bullshit. Robinhood tanked their credibility by letting the mask slip and people are on that like hyenas because of the irony. Really though, the focus on them is a distraction f…

> these claims of "supporting the people" is fundamentally 100% bullshit. what a world where a free platform takes an action to stay solvent and in business and its a bullshit claim that theyre helping their customers. i guess they shouldve done the more helpful thing and gone bankrupt, illegally allowing trades they cant cover.

They were dismissive enough of retailers that it didn't even enter their feeble minds that they might need to be able to cover the costs of a real market manipulation, the kind that institutions do all the time without having these kinds of problems.

They were always working for their hedge fund investors. They just got a hard slap to the face by the people they claimed to be working for.

And honestly, I'm not very impressed by anyone who would defend them.

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

#260

Post by djd20 »

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…

The trades are made with margin - aka borrowed money. Money borrowed from the broker. The broker runs the risk of being stuck with the bill for the money the lent out if clients cannot pay it back. The key issue is that rh gave margin to people with no clue, and should never have allowed margin trading to these accounts in the first place.
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