5 ms·
Robinhood has had a lot of screwups lately. At what point are they legally liable? Are they not held to a higher standard of accountability than normal tech com
by _bxg1 6y ago
Robinhood has had a lot of screwups lately. At what point are they legally liable? Are they not held to a higher standard of accountability than normal tech companies due to being a financial institution?
- ceejayoz 6y agoI can't really imagine a scenario where they're legally liable. Hospitals send six figure bills all the time to people without any legal repercussions.
- theincredulousk 6y agoThey have several extra responsibilities: ensuring your trades are handled fairly, the price information you're provided is reasonably accurate, and reasonably ensuring that you are generally capable of understanding what you're doing and the risks involved. Ensuring you don't lose money, or overreact to numbers on a screen, are not among them. I feel terrible for the kid. Even though he should have been well aware of what to expect in this situation, it seems like common sense that RH (or any trading software) should have some UI indication when the balance shown is a partially settled trade. It is an accounting reality - yes for a bit his account is really -$700k - but even if you know that, opening the screen and seeing it without some caveat is like a prank. Got you! You're actually not bankrupt. Seems unnecessary.
- _bxg1 6y ago> ensuring that you are generally capable of understanding what you're doing and the risks involved It seems to me that they blatantly failed at this responsibility in this case
- theincredulousk 6y agoHe had to answer a small questionnaire/set of affirmative responses to be able to trade these option strategies. If he lied on them that is not their responsibility anymore (unfortunately).