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The SEC is useless. $70M is 0.625% of the conservative value of Robinhood[1] as of a year ago. That means they have over 99.375% of value remaining to work wit
by jb775 5y ago
The SEC is useless.
$70M is 0.625% of the conservative value of Robinhood[1] as of a year ago. That means they have over 99.375% of value remaining to work with. How is this not simply treated as "cost of doing business" in the finance world? They should be putting execs in prison when the law is blatantly broken.
Then they expect younger generations to blindly trust the finance system. Time is ripe for millennials to cash in their 401ks and find a new place to put it....where sticky hands can't touch it.
[1] https://edition.cnn.com/2020/08/17/investing/robinhood-trading-app-valuation/index.html https://edition.cnn.com/2020/08/17/investing/robinhood-tradi...
- themodelplumber 5y agoPrison? Really? A lot of otherwise disadvantaged people have made life-changing money with RH. It offers education, research tools, and generally does a good job of being useful in supporting a proactive investing and trading habit. I would guess that the real cost here is the publicity and reputation hit, not the fine.
- therealdrag0 5y agoPlacing orders is not rocket science. I bought my first stock on etrade decades ago as a teenager from a lower class family. RH didn’t add much except a pretty UI and lubrication to make it more gamboling than it already was.
- themodelplumber 5y agoE-Trade, you mean the company that depicted a baby earning a stack of cash in a Superbowl ad? Good anecdote and I'm glad you were able to figure out how to buy your first stock, but even the gambling community cried foul on E-Trade when it was brand new. Robinhood's mobile app is known for its simple UI and improved charts over ET; it's much less cluttered in addition to being a good deal for taxable accounts + offering crypto derivatives.
- therealdrag0 5y agoI agree the UX is a big improvement. Just seems strange to call it a gift to the disadvantaged.
- chunky1994 5y agoFirstly, this fine was issued by FINRA, not the SEC. Secondly, which laws did they break exactly? This is a substantial fine for the scope of violations that were being investigated, as this has nothing to do with any of the gamestop restrictions earlier this year but their messaging, outages and vetting of customer expertise during 2018-2020. It boils down to a $70M fine for not having a high avilability system, being bad at explaining trading concepts and allowing people to take risks that other banks would not. That's quite a reasonable amount.