Robinhood Is Said to Draw on Credit Lines from Banks Amid Tumult

Posted by cwwc on Thursday January 28, 2021 @04:59PM
from the bloomberg.com dept.

https://www.bloomberg.com/news/articles/2021-01-28/robinhood-app-is-said-to-draw-on-credit-lines-from-banks-amid-trading-frenzy

( 3 comments | 30 points | on HN )

Re:Robinhood Is Said to Draw on Credit Lines from Banks Amid... by cwwc on Thursday January 28, 2021 @05:05PM (#25950067)

Because of net capital requirements, maybe? Or... pressure from clearing houses whose buddies are at citadel et cetera?

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Re:Robinhood Is Said to Draw on Credit Lines from Banks Amid... by colinj2 on Thursday January 28, 2021 @08:05PM (#25952150)

Robinhood's instant access to transferred funds is a margin account feature. So is instantly having access to your funds from selling a position. So just holding one share of GME increases RH's liquidity requirements. When I asked why the company I work for didn't do the same I was told we couldn't afford to give every warm body a margin account.

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Re:Robinhood Is Said to Draw on Credit Lines from Banks Amid... by cwwc on Sunday January 31, 2021 @06:34PM (#25983756)

fascinating - didn't know this

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