valuearb

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361.
by valuearb 6y ago
Maybe their investors can’t come up with multiple billions in the next few days? And what if GME goes to $1,000 Monday, or $10? And Robinhood still gets liquidated? Where is there no risk?
362.
by valuearb 6y ago
There was nothing illegal in what Robinhood did, and every broker has the right to determine which instruments they are willing to sell or buy, at any time. Would you prefer Robinhood to implode so you have to wait years to get a small frac
363.
by valuearb 6y ago
If Robinhood wanted to manipulate the GME market, they would have banned selling, not buying. Driving GMEs price lower increases Robinhoods collateral requirements and pushes them closer to bankruptcy.
364.
by valuearb 6y ago
Yes, infinite credit lines are easily arranged within a one week notice for a thinly capitalized broker. Dont you realize how big a $1B credit line is for a broker with so few assets such as Robinhood?
365.
by valuearb 6y ago
If it doesn’t every Robinhood trader will have their account locked, and will only ever get paid a fraction of its value years from now. While that is more than fair for WSB traders who caused this mess, there are likely many hundreds of t
366.
by valuearb 6y ago
What’s more likely. Customers regretting a bad trade use the hoary old claim a “glitch” to try to get broker to reverse it, post about it to try the ol social media shaming to ratchet up the pressure, and dozens of copycats do same? Or Robi
367.
by valuearb 6y ago
Fastest way to put Robinhood into liquidation so you can get a fraction of your account value back years later.
368.
by valuearb 6y ago
Yea, I wonder if Robinhood can survive into next week. Clearly their DTCC collateral requirements are skyrocketing and tapping out their credit lines wasn’t enough. 50-50 chance that Robinhood files bankruptcy and WallStreetBets traders get
369.
by valuearb 6y ago
I suspect if they didn’t have liquidity issues, they were just quicker that Robinhood to prevent them. I’m sure they didn’t want to tie up a huge part of their collateral in BME.
370.
by valuearb 6y ago
It’s not naked short selling. BME trades it’s entire share count in a daily basis, making it easy for the same share to be shorted multiple times.
371.
by valuearb 6y ago
The stock markets purpose isn’t to help companies find money, that Pr spin. It’s to help investors invest their monies more cheaply and safely. The side effect is that companies get cheaper access to investment funds. Without short sellers
372.
by valuearb 6y ago
How do we know these customers didn’t sell their own shares?
373.
by valuearb 6y ago
If he admitted how close they were to insolvency Robinhood would be out of business and no one would be getting their trades closed. Financial firms never warn about liquidity issues to prevent a run on their bank.
374.
by valuearb 6y ago
The only thing Robinhood is lying about is their solvency.
375.
by valuearb 6y ago
Yea, I mean the words “liquidity problem” from a Wall Street or Brokers CEO’s lips is almost an immediate firm suicide.
376.
by valuearb 6y ago
Robinhood would have no customers if it implemented that system. And Robinhoods actions affect on GMEs price was likely small. The investing world is far larger than Robinhood, and Citadels own statistics show retail investors have been net
377.
by valuearb 6y ago
One way of working around it is to make it illegal to do in your job.
378.
by valuearb 6y ago
Not just FBI, it’s illegal to lie to any federal agent from any agency. EPA agent asks you if you dumped some wastewater from your companies property into the sewage system. You, unsure of whether it was legal, lie and say no. Later it’s es
379.
by valuearb 6y ago
I’m fine with cops lying if you’ve been charged with a crime, and established the antagonistic relationship, but not before. When beat cops lie to ordinary citizens about what their rights are, it just builds up an enmity that makes it more
380.
by valuearb 6y ago
In the US it’s illegal to lie to a federal officer. The Martha Stewart offense.
381.
by valuearb 6y ago
Sometimes there isn’t a dog available. Sometimes the police have to leave on a higher priority call. Sometimes the dog doesn’t alert. Sometimes your lawyer can get the dog alerting thrown out based on other factors. What’s the risk of just
382.
by valuearb 6y ago
No no no. Don’t ever ask for immunity! That’s your lawyers job. When your lawyer asks for immunity it can’t be used against you in court. If you ask, it almost certainly will.
383.
by valuearb 6y ago
Asking for immunity can be used against you in court. “Officer, was there anything strange about the defendants response to finding out his ex-roomate had been murdered?” “Well he immediately asked for immunity to cover his actions in the c
384.
by valuearb 6y ago
Robinhood is not Melvin, different companies have different net asset based and borrowing ability. Melvin was also bailed out by Stephen Cohen, who the Melvin founder worked for. Cohen likely believed in the founder and already knew enough
385.
by valuearb 6y ago
Without short sales, could Put options even exist?
386.
by valuearb 6y ago
They didn’t manipulate squat, they were fighting to save their life. If they were manipulating GME price they would have tried to pump it higher because each time it crashed their DTCC margin requirements went up. Driving GME price down be
387.
by valuearb 6y ago
The only honest answer the CEO can give is “we are a thinly capitalized startup with a unique business model, that meant when the DTCC jacked margin requirements on BME further trades would have pushed us into insolvency” That’s not the kin
388.
by valuearb 6y ago
Robinhood is thinly capitalized, insolvency has never been far away.
389.
by valuearb 6y ago
Read up on what T+2 settlement period is. When you buy GME through Robinhood it is on hook for two days before it closes. To do this Robinhood has to post collateral with the clearinghouse (DTC) during that time. As BME volatility exploded
390.
by valuearb 6y ago
Read up on what T+2 settlement period is. When you buy GME Robinhood is on hook for two days before it closes and has to post collateral with the clearinghouse (DTC) during that time. As BME volatility exploded the collateral demanded of R

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