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I 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
by ABeeSea 6y ago
I 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.