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This is the best explanation I've seen for what may be the relatively innocent reason RH had to halt opening new positions in the meme stonks. Of course, it im
by AndrewBissell 6y ago
This is the best explanation I've seen for what may be the relatively innocent reason RH had to halt opening new positions in the meme stonks.
Of course, it immediately raises the question, "why didn't they just say this is what happened?" but they would not be the first broker in history that preferred lying to admitting they had liquidity issues.
- hindsightbias 6y agoPlease supply the long list of unicorn firms who have had to deal with meme liquidity crises.
- AndrewBissell 6y agoI said it may be the explanation. RH may also have been helping manipulate the stock lower for very powerful and connected market players and I think it's ridiculous for anyone to insist on dismissing that possibility just because it involves some conspiracy. Claiming "liquidity issues" and drawing on their credit line may even just be a cover for that. But to answer your question, both Lehman Brothers and MF Global claimed not to have any liquidity problems right up until the second they filed for bankruptcy.