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No one ever accused Robinhood of being competent. Although I think you're underestimating the difficulty of pulling billions of dollars out of nowhere. Robinho
by stu2b50 6y ago
No one ever accused Robinhood of being competent.
Although I think you're underestimating the difficulty of pulling billions of dollars out of nowhere. Robinhood was forced to sell equity to meet the deposit requirements - that's a harsh ask.
- lordnacho 6y agoThat is another oddity. If there was no insolvency problem, presumeably all that was needed was a loan?
- stu2b50 6y agoAnd they did get a loan[0]. I think you overestimate the ability of Robinhood to get an infinite amount of money in debt from banks within a few days notice. Then they even sold more equity[1]. [0]https://finance.yahoo.com/news/robinhood-said-draw-credit-lines-214509076.html https://finance.yahoo.com/news/robinhood-said-draw-credit-li... [1]https://www.wsj.com/articles/robinhood-raises-1-billion-to-meet-surging-cash-demands-11611928504 https://www.wsj.com/articles/robinhood-raises-1-billion-to-m...
- lordnacho 6y agoThey're a financial institution in the age of zero interest, in no danger of defaulting. I mean come on? You sure it wasn't just money they were about to raise anyway? Just jam some friends in pre IPO?