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The Gamestop incident is a very counter to the Robinhood brand so very damaging to the company.. Communication was not handled well. A good lesson for everyone.

by 99_00 6y ago

The Gamestop incident is a very counter to the Robinhood brand so very damaging to the company.. Communication was not handled well. A good lesson for everyone. People shouldn't be trying to figure out what's going on by digging deep in forums and social media. CEO should have been front and centre the day it happened. Hindsight is 20/20. A lesson for all. Doesn't help that opportunistic politicians jump on it to raise their profile.

tgb 6y ago
I'll make a little prediction: the negative press Robinhood is receiving will be out-weighed by the fact that so many people are getting interested in stocks due to this. I think they'll be better off despite this debacle in a month. (Though this doesn't include the possibility that they broke a regulation and lose a court case or that congress is spurned into action and regulates them out of business somehow.)
- bob1029 6y ago
  This is my take as well. Robinhood getting raked over the coals is a bi-annual tradition which has been practiced for several years now. It's not like they really had a choice or were fundamentally at fault for anything in this case. Contrast with prior incidents which were wholly related to bad engineering practices. Getting a margin call from the DTCC isn't an optional inconvenience. Perhaps Robinhood could have had more buffer available to deal with this scenario, and that may wind up being the regulatory outcome of all of this.
- 99_00 6y ago
  Do they have any competition worth mentioning? If not, then I think you are right. I don't live in the US, but my countries Robinhood like trading app shot up to #1 in our app store.
asah 6y ago
I emptied my account, just like I did after the Wells scandals (plural). Years from now, maybe a new exec team, and I'll consider returning (though it's been many years for Wells, and I have no reason to reconsider...)
brown9-2 6y ago
The dilemma though is that a clear statement of “we are running out of cash” would start a run of customers transferring their money and cashing out, cash RH didn’t have.

by 99_00 6y ago

tgb 6y ago

I'll make a little prediction: the negative press Robinhood is receiving will be out-weighed by the fact that so many people are getting interested in stocks due to this. I think they'll be better off despite this debacle in a month. (Though this doesn't include the possibility that they broke a regulation and lose a court case or that congress is spurned into action and regulates them out of business somehow.)

bob1029 6y ago
This is my take as well. Robinhood getting raked over the coals is a bi-annual tradition which has been practiced for several years now. It's not like they really had a choice or were fundamentally at fault for anything in this case. Contrast with prior incidents which were wholly related to bad engineering practices. Getting a margin call from the DTCC isn't an optional inconvenience. Perhaps Robinhood could have had more buffer available to deal with this scenario, and that may wind up being the regulatory outcome of all of this.
99_00 6y ago
Do they have any competition worth mentioning? If not, then I think you are right. I don't live in the US, but my countries Robinhood like trading app shot up to #1 in our app store.

asah 6y ago

I emptied my account, just like I did after the Wells scandals (plural). Years from now, maybe a new exec team, and I'll consider returning (though it's been many years for Wells, and I have no reason to reconsider...)

brown9-2 6y ago

The dilemma though is that a clear statement of “we are running out of cash” would start a run of customers transferring their money and cashing out, cash RH didn’t have.