4 ms·
Which is why you push back and tell the clearinghouse to make a public statement to that effect. The CH is faced with two options: One, make the statement and
by mike_d 6y ago
Which is why you push back and tell the clearinghouse to make a public statement to that effect.
The CH is faced with two options: One, make the statement and hurt a public reputation they don't care about in the first place. Or they could cut off all trading to RH, which puts RH on the same side of the fight as they have been trying to market themselves as being on from the beginning. Win win.
- justlurkin12 6y agoActually if RH didn't wire over the funds, they would be dissolved due to illiquidity.
- ABeeSea 6y agoI don’t think it was the CH’s choice. I believe the collateral requirements are set in Dodd-Frank. And financial firms don’t go j to extended bankruptcies when they run out of cash like other companies. They immediately go into receivership and/or liquidation. Trying to play chicken with the CH would have just ended RH as a company pretty much immediately.
- mike_d 6y agoIf it was a regulatory requirement, then they should have been put in to receivership immediately. Being unable to meet colleterial requirements means they extended credit beyond their means.
- ABeeSea 6y agoThey never went over the threshold because they turned off buying for the most volatile stocks.