4 ms·
> These firms should have had no problem continuing allowing purchasing. Their costs increased 50x overnight - so they definitely should have had problems. DTC
by soared 6y ago
> These firms should have had no problem continuing allowing purchasing.
Their costs increased 50x overnight - so they definitely should have had problems. DTC required a few percent collateral, and then overnight required 100% collateral on $GME. No business (well, fidelity and a few others weathered it) is able to increase short term liquidity 50x overnight.
- Rebelgecko 6y agoCouldn't they just add a requirement that GME can only be purchased with settled funds? That seems like it would solve the issues mentioned above
- Dma54rhs 6y agoSettled funds means two days that is longer than the whole situation. It was mainly new money anyway so the accusations and anger would be the same?
- criddell 6y agoTheir CEO went on CNN and stated there were no liquidity problems at RH.
- astrange 6y agoHe said they’d used their credit lines, just that there wasn’t enough of a liquidity problem to affect the rest of the business. And then they got another $1B the next day.