6 ms·

This feels like RH is going to go under if they don’t make this move? Are they holding a lot of risk by not doing this or something? And what repercussions wou

by plasma 6y ago

This feels like RH is going to go under if they don’t make this move? Are they holding a lot of risk by not doing this or something? And what repercussions would they face, surely they’ve flagged that risk and are doing it anyway.

lainga 6y ago
Some people have speculated (big sign reading SPECULATION SPECULATION NO PROOF above this post) it might make sense if RH was trading for itself and taking the other side of its client's trades, like Goldman was accused of doing in '08. In which case they are in big hot water. ed. yes, on the chance that this wasn't just a margin call
markdown 6y ago
> And what repercussions would they face Nothing worth worrying about. Every single case in the financial sector over the past two decades has resulted in fines that are a fraction of the profits. I mean, you had banks laundering money for cartels, Malasians were looted, etc etc... every single time they fine the culprits a tiny fraction of their profits. The US has made criminal activity profitable, even if you get caught. So Citadel and RH probably just made the smart move. Screw the rules, because the punishment for breaking them will be more than worth it.
- captainarab 6y ago
  100% agree. Pretty sad to see most of HN willfully ignoring this fact and jumping to the defense of Hedge Funds and the billionaire class.
  - deleted 6y ago
    [deleted]
  - wyre 6y ago
    Reading HN this whole month has been disheartening after reading so many comments defending the insurrection and Parler.
    - shrimpx 6y ago
      Although you have to see a bit of the irony in the similarity between Trump populists getting deplatformed and Redditors getting blocked from trading.
  - dang 6y ago
    That's an inaccurate characterization, as anyone reading these threads can easily see.
  - FabHK 6y ago
    FWIW, I think there are no conspiracies here on the side of Robinhood, and the attacks by the revolutionary mob are misguided. Having said that, there is no question that banks ruined the economy during the GFC, and didn't pay enough of a price, and hedge fund managers often make a killing, while paying very little in taxes, and HFT make a killing without providing any social value. But the answer to that is not, I'm afraid, hyping some gaming stock and trying to squeeze a few shorts. The answer is political action - voting, pushing for proper regulation. There are lots of proposals out there: stringent capital requirements for banks; closing the "carried interest" loophole; changing the structure of markets (eg auctions every minute instead of continuous markets).
czechdeveloper 6y ago
Doing this will already probably kill them, so they must be afraid of worse. Who would remmain using them after this?
- almost_usual 6y ago
  > Who would remmain using them after this? Most users who don’t know anything about WSB probably
  - guerrilla 6y ago
    Who's that? It's been headline news for at least three days.
    - wyre 6y ago
      Trump still has millions of supporters after years of negative headlines. Idk who is still going to use RH but I know they exist.
      - pxtail 6y ago
        I feel like that supporters count can increase due to all this mess around GME
  - djrogers 6y ago
    Over half of Robinhood account holders had a position in GME as of yesterday, you can’t tell me those people had done that without knowing about WSB.
- noitpmeder 6y ago
  I will bet you anything this will actually help them overall.
captainarab 6y ago
This is blatant anti-competitive behavior on the part of Robinhood and Citadel. Ultimately, they know that their SEC Fine will be less than the $50B+ in losses they face from their irresponsible naked short selling. Did we learn nothing in 2008? Are we just going to continue to allow wall street to get away with fleecing everyone else in America / the world?

by plasma 6y ago

lainga 6y ago

Some people have speculated (big sign reading SPECULATION SPECULATION NO PROOF above this post) it might make sense if RH was trading for itself and taking the other side of its client's trades, like Goldman was accused of doing in '08. In which case they are in big hot water. ed. yes, on the chance that this wasn't just a margin call

markdown 6y ago

> And what repercussions would they face Nothing worth worrying about. Every single case in the financial sector over the past two decades has resulted in fines that are a fraction of the profits. I mean, you had banks laundering money for cartels, Malasians were looted, etc etc... every single time they fine the culprits a tiny fraction of their profits. The US has made criminal activity profitable, even if you get caught. So Citadel and RH probably just made the smart move. Screw the rules, because the punishment for breaking them will be more than worth it.

captainarab 6y ago
100% agree. Pretty sad to see most of HN willfully ignoring this fact and jumping to the defense of Hedge Funds and the billionaire class.
- deleted 6y ago
  [deleted]
- wyre 6y ago
  Reading HN this whole month has been disheartening after reading so many comments defending the insurrection and Parler.
  - shrimpx 6y ago
    Although you have to see a bit of the irony in the similarity between Trump populists getting deplatformed and Redditors getting blocked from trading.
- dang 6y ago
  That's an inaccurate characterization, as anyone reading these threads can easily see.
- FabHK 6y ago
  FWIW, I think there are no conspiracies here on the side of Robinhood, and the attacks by the revolutionary mob are misguided. Having said that, there is no question that banks ruined the economy during the GFC, and didn't pay enough of a price, and hedge fund managers often make a killing, while paying very little in taxes, and HFT make a killing without providing any social value. But the answer to that is not, I'm afraid, hyping some gaming stock and trying to squeeze a few shorts. The answer is political action - voting, pushing for proper regulation. There are lots of proposals out there: stringent capital requirements for banks; closing the "carried interest" loophole; changing the structure of markets (eg auctions every minute instead of continuous markets).

czechdeveloper 6y ago

Doing this will already probably kill them, so they must be afraid of worse. Who would remmain using them after this?

almost_usual 6y ago
> Who would remmain using them after this? Most users who don’t know anything about WSB probably
- guerrilla 6y ago
  Who's that? It's been headline news for at least three days.
  - wyre 6y ago
    Trump still has millions of supporters after years of negative headlines. Idk who is still going to use RH but I know they exist.
    - pxtail 6y ago
      I feel like that supporters count can increase due to all this mess around GME
- djrogers 6y ago
  Over half of Robinhood account holders had a position in GME as of yesterday, you can’t tell me those people had done that without knowing about WSB.
noitpmeder 6y ago
I will bet you anything this will actually help them overall.

captainarab 6y ago

This is blatant anti-competitive behavior on the part of Robinhood and Citadel. Ultimately, they know that their SEC Fine will be less than the $50B+ in losses they face from their irresponsible naked short selling. Did we learn nothing in 2008? Are we just going to continue to allow wall street to get away with fleecing everyone else in America / the world?