Robinhood, in Need of Cash, Raises $1B from Its Investors
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Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#2[dead]
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#3So they put a halt on opening new positions not to protect their customers, but because it was straining their own liquidity position. They're certainly not the first broker to choose lying to the public over confessing to liquidity issues -- although I would say they're much more likely to weather this storm than their predecessors.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#4So they put a halt on opening new positions not to protect their customers, but because it was straining their own liquidity position. They're certainly not the first broker to choose lying to the public over confessing to liquidity issues -- although I would say they're much more likely to weather this storm than their predecessors.
I mean - it has been revealed to be a shitty broker but I'm not sure if those two things are that different?
If this afternoon Robinhood didn't have 1B secured how could it have taken the orders without violating every trading regulation in the book? They would either have had to lie to the people they were buying from or lie to their clients.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#5Robinhood has been known to be sham for a very long time. Anyone with money there is willfully ignorant.
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#6So they put a halt on opening new positions not to protect their customers, but because it was straining their own liquidity position. They're certainly not the first broker to choose lying to the public over confessing to liquidity issues -- although I would say they're much more likely to weather this storm than their predecessors.
I mean - it has been revealed to be a shitty broker but I'm not sure if those two things are that different? If this afternoon Robinhood didn't have 1B secured how could it have taken the orders without violating every trading regulation in the book? They would either have had to lie to the people they were buying from or lie to their clients.
Or they could just come clean and tell the truth..
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#7Earlier quoted context omitted.
I mean - it has been revealed to be a shitty broker but I'm not sure if those two things are that different? If this afternoon Robinhood didn't have 1B secured how could it have taken the orders without violating every trading regulation in the book? They would either have had to lie to the people they were buying from or lie to their clients.
Or they could just come clean and tell the truth..
They sent an email yesterday:
"As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today."
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#8Earlier quoted context omitted.
Or they could just come clean and tell the truth..
They sent an email yesterday: "As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including throug…
and at the same time their own CEO made statements that they dont have liquidity issues. They also sent that communication well after the market closed. They should have sent a much more detailed explanation right at market open thursday
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#9Earlier quoted context omitted.
They sent an email yesterday: "As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including throug…
and at the same time their own CEO made statements that they dont have liquidity issues. They also sent that communication well after the market closed. They should have sent a much more detailed explanation right at market open thursday
It can be argued that they don't have liquidity issues - they have collateral deposit issues (Due to the massive user growth, and the delay between when an ACH transfer to Robin Hood clears the banking system (a few days), and the time they permit you to trade on your account (less than a few days))
Re: Robinhood, in Need of Cash, Raises $1B from Its Investors
#10Robinhood has been known to be sham for a very long time. Anyone with money there is willfully ignorant.