I'm not putting the blame on them for people losses but for their own lack of preparedness.
They had a liquidity crunch in March and never did enough worst case scenario planning.
They also irresponsibly offer margin to new sign ups to trade options with. Pay 5 bucks a months and use margin to trade a leveraged product? Come on if your going to take on that counterparty risk you better have massive capital buffers. The growth at all costs strategy bit them in the ass.
They had to raise and borrow or raise 3.4 billion in 4 days to shore up the hole in their reserves. They had only raised 3.2 billion since inception.
They were on the edge last week and if it wasn't for massive firms like Sequoia they easily could have failed or at had to totally restrict trading.
That being said Robinhood in the long run will be fine, and hopefully this leads them to tighten their controls and continue to improve what has been a revolutionary product. I think this my last allowed post today lol.
Completely disagree.. don't get into the trading game if you don't realize what you need to have in reserve to cover shit like this. Vlad saw the opportunity to add to his World Bank trust and got caught with his pants down. The rich get richer and the guys who call them out are the criminals. And who came to bail him out, the even richer. If you are going to blame a crew of people who are showing you the corruption within the SEC then you are completely blind. Go after the penny savages who daily rape the innocent investor.
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