Posted on 01/29/2021 9:24:14 AM PST by JV3MRC
But for elections, it’s all good.
“Should be...?” Is he saying it isn’t? Is that going to be the big defense?
I can hear Biden now: “There was no controlling legal authority and nothing done was illegal but we’re going to pass a law to make sure it never happens again ... “
Will we ever found out WHY Robinhood changed the rules? What pressure did they face from their hedge fund owners or Fed.gov?
NO - Robinhood will be the fall guy. The manipulation behind the scenes will never be revealed.
All this whining from Wall Street! LOL!
They lose some money and all hell breaks loose.
Loaning money you don’t have should be illegal as well, but that’s exactly what banks do ...
Bring the rebellion against Wall Street and the unbelievable fraud of naked shorts. The street does this, crushing and torturing investment reality, controlling prices. This is esp. evil in commodities.
When real investors do the same as they do they cry foul. Smash _their_ illusions. Hurrah USA!
I seem to remember George Carlin once saying something about how politicians “want to combat street crime! Not so much when it’s Wall Street.”
Selling somebody’s position out from under them without the customer placing a sell order from an account in good financial standing is definitely illegal.
Charles is playing to the crowd. He knows better or should know better. Robin Hood had 13 million clients and stories say HALF of them were in GME. I’d bet most on margin. That is INSANE firm risk. SEC regs REQUIRE firms to mitigate risk like that. END OF STORY.
And no, for the logic challenged (if A is false then B must be false), that is not a defense of the hedge funds on the other side of the trade.
Payne isn’t a legal expert. The move very well could be illegal. In fact, it stinks of market manipulation. Payne is just saying the quiet part aloud for most Americans: “How is this not illegal?”
Good day, all!
I was watching Varney & Co. earlier. He had (the shrew) Sandra Smith on for a segment to discuss this. She apparently rifled through the 36 page EULA that Robinhood users have to agree to, and unless she’s full of S#@t, legally, their collective asses may be covered on this one. They put up a graphic from the aforementioned EULA that stated (and I’m paraphrasing) that “they can, and will stop trading at their own discretion when they feel it’s beneficial”.
While there is a certain schadenfreude about hedge funds being in a crash and burn situation, the chaos could paralyze the capital markets necessitating (wait for it) a taxpayer funded bailout 😨.
They’re NOT required to restrict people from buying stock when doing so is completely legal. The falling stock price is then not natural, it is manufactured. That stinks of manipulation. The SEC just announced today that they’re going “to protect individual traders and promised to scrutinize actions taken by brokerages that may ‘disadvantage investors or otherwise unduly inhibit their ability to trade certain securities,’” according to CNBC.
Payne is right here.
Eh, I’m not completely sure they’re 100% protected. Robinhood released some of the restrictions after the SEC and NY AG said they were reviewing Robinhood’s actions. Doesn’t exactly sound like they’re too confident.
Dave Portnoy from Barstool is quite animated about this as well, and seems to be in the Payne camp.
I don’t have a link, but shortly after the segment I mentioned above, they ran a story about Yellin receiving $812K to speak at one of the affected hedge funds.
That’s the question. It wasn’t just Robinhood that did this. Multiple other brokerages targeted the same stock, which artificially caused the stock price to crash. That smells an awful lot like manipulation. Not sure where you’re getting that Payne’s wrong here. He’s just giving his opinion on what “should” be. He didn’t say the action was in FACT illegal because he isn’t a legal expert.
This was his full quote:
“[I]f you can only sell stocks, then those stocks only go down. It’s really heartbreaking, and I think it should be illegal to change the rules this dramatically even if it’s somewhere in the fine print.”
“half wrong” I should say.
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