Robinhood Will Retool Checking Product Following Scrutiny

Re:Robinhood Will Retool Checking Product Following Scrutiny by muhneesh on Saturday December 15, 2018 @10:21PM (#18691587)

The correct response here would be for Robinhood to cancel the product and apologize, instead of revamping their marketing materials.

They are not offering a "cash management" service. Unless they get insured or find another vehicle to prevent funds from being at risk, they are effectively just borrowing money from their customers.

This is sardonically innovative, as they've invented the retail investor equivalent of a revolver[1].

If they continue to market this without deep protections for consumers, this is effectively a scam and I would encourage anyone originally considering this to scuttle their considerations.

[1] https://www.investopedia.com/terms/r/revolver.asp

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Re:Robinhood Will Retool Checking Product Following Scrutiny by fastball on Sunday December 16, 2018 @02:34AM (#18692168)

TIL banks didn't exist before the FDIC existed.

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Re:Robinhood Will Retool Checking Product Following Scrutiny by muhneesh on Sunday December 16, 2018 @02:43AM (#18692188)

This is a ridiculous strawman as it relies on an equation of social and economic systems before the 1930s to today, but despite that, it's a bad strawman given that the FDIC was created in direct response to restore faith in American banks after the Great Depression.

I'm all for fintech, but I'm not for blind trust in startups looking for hypergrowth as it relates to consumer protections.

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