Posted on 01/28/2021 11:24:21 PM PST by knighthawk
The CEO of trading platform Robinhood has defended his firm's highly controversial decision to halt trading of certain stocks on Thursday, insisting it was for the good of customers and the company.
Vlad Tenev, a 33-year-old Bulgarian-American businessman, co-founded Robinhood in 2013.
On Thursday night he explained why his platform had infuriated users by preventing trading in stocks including GameStop, AMC Cinemas, Nokia and American Airlines.
(Excerpt) Read more at dailymail.co.uk ...
Time to get that orange jumpsuit fitted. Unless of course he has usefulness to the commies in DC.
Selling shares without permission. And the fascist occupation government in DC will see no problem with it.
I expect pandemonium in the market today. It’s gonna be a wild day.
No need defend his companies position. States right in the TOS that they reserve the right to do this.
'In order to protect the firm and protect our customers we had to limit buying in these stocks,' he said.
The popular app boasts 13 million users, and reportedly about half of them own shares of GameStop.
Legal experts say brokerages have broad powers to block or restrict transactions, and are skeptical that the suit will be successful.
'I'm looking at the Robinhood contract, and it says in black-and-white they can block or restrict trades at any time,' Miami attorney Jeff Erez told Bloomberg.
HALF OF THEIR CLIENTS OWNED SHARES IN GAMESTOP! A $15 stock goes up to $500 for ZERO REAL REASON ECONOMIC REASONS, other than a concocted stock manipulation scheme. If half of their 13 million clients bought on margin on the way up, a collapse back down to sane value would jeopardize the all clients. If it was my firm I certainly would not want to be holding the bag on hundreds of millions of dollars of margin calls, that most of these rube, noob traders would default on.
And all of the users of his service reserve the right to trash him over it and give bad reviews at the Google Play Store to warn potential future customers that the owner is a dirtbag who kowtows to the big guys and politicians.
Oh wait. Google deleted all of the bad reviews. Never mind.
bookmark
******I certainly would not want to be holding the bag on hundreds of millions of dollars of margin calls, that most of these rube, noob traders would default on.******
There will be no margin calls. These people are straight up buying stocks with their own money. What they pay for is what they own. They will either win or lose, but THERE WILL BE NO MARGIN CALLS, because they are not buying on margin.
>>Selling shares without permission. And the fascist occupation government in DC will see no problem with it.
I didn’t see anything in the actual article - just the headline, that said they sold any shares without permission; in fact it says repeatedly users could sell their shares, and they only restricted the ability to buy.
I don’t use robinhood, but I don’t see the problem here.
There were multiple reports yesterday stating that Robinhood was selling their stock at around the $118 mark. Not sure the validity but there were screenshots of the emails from Robinhood.
Google deleted all of the bad reviews
Well in that case let us undelete some
Both have an estimated net worth of about $1 billion, thanks to their stakes in Robinhood, which is valued at $11.7 billion.
Last month, the SEC ruled that Robinhood had misled its customers about how it was paid by Wall Street firms
for passing along customer trades and that the start-up had made money at the expense of its customers.
Robinhood agreed to pay a $65 million fine
to settle the charges, without admitting or denying guilt.
Yup that showed em.
Wait until Amazon buys them and class action them into the dirt.
I had one of my biggest trades of all time ‘broken’ once. I was long a whole bunch of e-mini Russell futures when a fat fingered trade (that’s what they called them) went thru that jumped me up into sky high territory. Then the market shut down and I couldn’t sell them. When the market reopened it was like the trade had never happened....thanks to the SEC who broke all the trades around that time.
IF they bought on margin, I’m sure there is wiggle room in the crappy ‘click through’ agreements for using their app, IF the client didn’t have enough banked on hand to cover any call.
IF, however, the traders had just bought the stock outright, and Robinhood sold it from under them without permission, they are likely in trouble from a legal standpoint, at least in theory. I would assume they (RH) know that the slap on the wrist they are likely to get from the government will be less than whatever compensation they are going to get to cover the shorters. I’m sure it’s simply a risk-reward calculation on their part.
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