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Ask HN: Risk of Broker Bankruptcy Due to GME?
Robinhood had to take a billion dollar emergency loan to meet it's requirements. We have seen Robinhood is a very shakily run brokerage with lots of downtime and was fined last month for illegal activity in how it handled client accounts. Interactive Brokers CEO pointed out that if one brokerage goes bankrupt, the other brokerages are obligated to pay off its debts. In the case of a massive GME short squeeze that crushes Robinhood, what are the odds other brokers go bankrupt too?
- Lionga 6y agohttps://www.reddit.com/r/wallstreetbets/comments/l8nap0/thursday_morning_the_entire_market_was_on_the/?utm_medium=android_app&utm_source=share https://www.reddit.com/r/wallstreetbets/comments/l8nap0/thur...
- runawaybottle 6y agoThat’s very concerning. This feels just like 2008 in one way, we have limited financial journalists. No one reports anything beforehand.
- fiftyacorn 6y agoSounds like sooner or later we will see a bankrupt broker. I think we'll see more attacks like gme, and the authorities need to tell the hedges and brokers to sort their stuff out as people are sick of it. Of course this won't happen