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This is the current state of our SEC. Regulators asleep at the wheel, while uninformed retail investors are going to be hosed when the bankruptcy finalizes. I

by pdq 6y ago

This is the current state of our SEC. Regulators asleep at the wheel, while uninformed retail investors are going to be hosed when the bankruptcy finalizes. If they allow this, the investors who lose their money should be able to sue the SEC for negligence.

koolba 6y ago
> Regulators asleep at the wheel, while uninformed retail investors are going to be hosed when the bankruptcy finalizes. Anyone buying a company stock after it has declared bankruptcy is de facto a speculator. > If they allow this, the investors who lose their money should be able to sue the SEC for negligence. On what ground? That their get rich quick scheme didn’t pan out? I think this is down right genius on the part of Hertz.
qeternity 6y ago
I hate this coddling of Robinhooders. There is nothing illegal or immoral about this. This is capitalism at its finest. Retail has flooded into a market thanks to trillions from the Fed, and Hertz is doing exactly as it should: raising capital in the most efficient way possible. > If they allow this, the investors who lose their money should be able to sue the SEC for negligence. What?!? How can you justify this at all. People have flooded into a stock like gamblers chasing quick returns. The SEC has a duty to allow this. You believe that Robinhooders should be protected from themselves. This is so wrong.
nemothekid 6y ago
>If they allow this, the investors who lose their money should be able to sue the SEC for negligence. Why? Hertz is not doing anything dishonest.
- vizzah 6y ago
  They do. Because their bonds currently trade at ~0.4 of $1. And considering equity owners are the latest who will receive any money following the bankruptcy, they know well they aren't going to raise enough money to even deal with other creditors. And they go and issue another $1bn of a worthless equity because never in the history of financial markets there would been so many idiots who would be buying it in such a frenzy. A little chance though that this cash raise could somehow help them get out of the bankruptcy - sort of "a bailout by the shareholders" - but it's still unlikely.
nickff 6y ago
The company has literally filed for bankruptcy! How much more disclosure and notice are you expecting? The SEC is there to ensure fairness, not profitable investments.

by pdq 6y ago

koolba 6y ago

> Regulators asleep at the wheel, while uninformed retail investors are going to be hosed when the bankruptcy finalizes. Anyone buying a company stock after it has declared bankruptcy is de facto a speculator. > If they allow this, the investors who lose their money should be able to sue the SEC for negligence. On what ground? That their get rich quick scheme didn’t pan out? I think this is down right genius on the part of Hertz.

qeternity 6y ago

I hate this coddling of Robinhooders. There is nothing illegal or immoral about this. This is capitalism at its finest. Retail has flooded into a market thanks to trillions from the Fed, and Hertz is doing exactly as it should: raising capital in the most efficient way possible. > If they allow this, the investors who lose their money should be able to sue the SEC for negligence. What?!? How can you justify this at all. People have flooded into a stock like gamblers chasing quick returns. The SEC has a duty to allow this. You believe that Robinhooders should be protected from themselves. This is so wrong.

nemothekid 6y ago

>If they allow this, the investors who lose their money should be able to sue the SEC for negligence. Why? Hertz is not doing anything dishonest.

vizzah 6y ago
They do. Because their bonds currently trade at ~0.4 of $1. And considering equity owners are the latest who will receive any money following the bankruptcy, they know well they aren't going to raise enough money to even deal with other creditors. And they go and issue another $1bn of a worthless equity because never in the history of financial markets there would been so many idiots who would be buying it in such a frenzy. A little chance though that this cash raise could somehow help them get out of the bankruptcy - sort of "a bailout by the shareholders" - but it's still unlikely.

nickff 6y ago

The company has literally filed for bankruptcy! How much more disclosure and notice are you expecting? The SEC is there to ensure fairness, not profitable investments.