Robinhood, in Need of Cash, Raises $1B from Its Investors
81–90 of 479 posts
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#82"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…
Are brokerage deposits / holdings protected by insurance? I'm genuinely fearful of losing my holdings in Robinhood at this point.
Your holdings in cash or your holdings in shares?
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#83The CEO just gave 3 interviews tonight and denied this was at all related to liquidity issues for the company in all 3 when pressed. Terrible look.
A clip from one of those interviews: https://twitter.com/ChrisCuomo/status/1354994000294522881 In the entire interview there's no real answer to any question.
He just deflects
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#84Earlier 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).
The people YOLOing on meme stocks is what makes their orderflow so valuable to Citadel. Why would they be willing to pay so much for it if not for that flow? (At least until the past few weeks, where maybe now it's considered toxic)
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#85Earlier 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.
Do users actually lose the stocks, if something that happens to the Robinhood itself? I live under assumption that it is not happening. In any case stocks should stay belonging to the folks who purchased them.
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.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#86Earlier 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.
Do users actually lose the stocks, if something that happens to the Robinhood itself? I live under assumption that it is not happening. In any case stocks should stay belonging to the folks who purchased them.
If the stocks are still there, then you are entitled to get them.
Unfortunately, there is no way to check if the stocks are really there. RH showed you some pixels on the screen saying they hold stocks for you. If RH maliciously or by mistake lost them or never bought them, then there is no third party that will make you whole.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#87Earlier quoted context omitted.
And right after saying they don't have any liquidity problems said, "We're #1 on the app" while retail investors were losing millions because of expiring options/stocks. Absolutely tone-deaf. Not denying that all securities have risks, but that was a bad response imo.
Retail investors lost millions because of an inability to buy?
Yes, blocking half of your order book with cause the price to fall.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#88Dear Hollywood, Please make a movie out of this.
and please get funded by some hedge fund...
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#89So much for the conspiracy theory about Robinhood changing policies to favor institutional traders over retail investors. Speculation is healthy but I am surprised to see so many educated people fall for social media fear mongering to the point that they decided to drive down Robinhood’s app reviews. Many of my friends who ate up all the outrage are the same people who laughed at QAnon conspiracy theorists, but here…
So you’re putting a theory about pedophiles that run the world so they can drink the blood of children is somehow on par with the theory that billionaire hedge funds would try to exert undue pressure to preserve their wealth... Get the fuck out of here with your false equivocation
It’s not on par in that one is more absurd and unrealistic than the other. So I acknowledge your critique. But my point was more that the psychological root causes of both are similar. It comes from a tendency to latch onto a self-serving or pleasing or favorable explanation. An unproven or unrealistic or outright false narrative will do if it makes us comfortable. Ultimately, I see this example with broker collusion theories as a sign that no one is holier than others or above these very human tendencies.