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As long as profits are greater than fines, these penalties aren't enough to incentivize good behavior.
by miguelmota 6y ago
As long as profits are greater than fines, these penalties aren't enough to incentivize good behavior.
- sonotmyname 6y ago> The order finds that Robinhood provided inferior trade prices that in aggregate deprived customers of $34.1 million even after taking into account the savings from not paying a commission. Sooooooo the fine is nearly 2x the cost to consumers due to malfeasance. That should cover your concern here.
- jellicle 6y agoNo, much more than $34M in misbehavior. Hurt customers by $34M over what they would have been charged if they had paid commissions. So Robinhood took money from its customers to this extent: all the cash as if its customers were paying commissions, and also $34M, and for that they're being fined $65M, which will probably be negotiated down to $2M or something like that.