Posted on 01/29/2021 12:05:04 PM PST by fuzzylogic
I logged into my bank account and saw a message not seen before - timing is curious, "Alert: Comerica Bank does not currently allow the use of debit cards or web or mobile banking services for use with online gambling sites. Attempting to use these sites may result in your debit card or web banking being temporarily disabled."
Do they say you can’t use it on Robinhood? Your logic is missing a couple of parts.
Call your bank.
I wonder if campaign contributions were still allowed? Which is the biggest definition of gambling.
Change banks.
If you live in a state that prohibits gambling then the bank will have to adhere to state law.
I live in California and I can’t use my credit cards to gamble outside of the state.
What state do you live in? Mine outlawed those sports betting sites.
My bank has done that for years.
The timing of this is very curious though, I’ve never seen them post (in red letters!) such a message and it didn’t appear yesterday.
...now with all the Robinhood “short queeze” bank craziness it appears all-of-a-sudden. There’s no explanation of whom they consider “gambling”...but many would call stock trading gambling.
I’m in Michigan - does your State consider sites like Robinhood (to trade stock) gambling?
Shorting DraftKings, Inc right after I hit enter.
Ahh ... Here’s your answer. Michigan is going “live” soon (March) with online sports betting. My guess is Comerica is weighing how they’re going to handle it.
https://www.legalsportsreport.com/47126/michigan-sports-betting-launch-online-within-days/
Michigan is turning into Biffville
They should ban margin purchases altogether with these stocks. Make purchasers pay for it out of their own funds.
FWIW, I got this notice from my broker (E*Trade) Wednesday. I have to wonder if it is connected to the GameStop situation. The “holding” is not GameStop and I’ve not seen it mentioned in any of the stories on short trades, but it has shown sharp swings of prices in the last 3 weeks. I’ve held this stock for over 20 years.
***01/27/21 09:15AM ESTSpecial Margin Maintenance Requirement Increase
To effectively manage the risks associated with margin trading, E*TRADE periodically reviews and updates margin requirements.
The maintenance requirement for your holding below has increased. This may decrease your available purchasing power. It may also put your account at risk of a house call if your equity falls below the minimum requirement.
Account: XXXX-XXX
Holding ticker symbol:
Holding description:
New requirement: 100%
Old requirement: 60%
Please note: If you have uncovered options on this security, your requirements for those positions may also be affected.
Yes. That one is absolutely tied to the GameStop situation.
I used to play with margin all the time. It’s like using a credit card.
The financial markets have been spooked...and probably folks like E-Trade have been (secretly) ordered to tighten their margin requirements.
The GameStop saga was a _huge_ deal. It may well have threatened the stability of the entire house of cards financial markets worldwide.
The Kleptocrats are spinning plates in the air....thousands of different kinds of corrupt institutions just waiting to crash into a million pieces.
Love it!
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