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Re:Class Action Lawsuit Filed Against Robinhood by cde-v on Thursday January 28, 2021 @05:41PM (#25950551)
Sounds exactly like JP Morgan and Goldman Sachs.
Re:Class Action Lawsuit Filed Against Robinhood by JumpCrisscross on Thursday January 28, 2021 @05:45PM (#25950595)
> Sounds exactly like JP Morgan and Goldman Sachs

I don't think JPMorgan needed any government intervention. Goldman didn't directly, but if AIG had gone under so would they. (To be fair, so would the entire financial system.) But in the end, both of them got help.

Citadel didn't. It wasn't in that club. It is not now. If Citadel failed tomorrow, it would make headlines for a week, and then we'd move on.

Re:Class Action Lawsuit Filed Against Robinhood by thedudeabides5 on Thursday January 28, 2021 @05:58PM (#25950743)
That's what you might think, but since the Volcker rule, a lot of the kind of 'liquidity provision' (aka trading) done in the banks has now been forced into funds like Citadel.

Meaning 'too big to fail' applies to hedge funds now just like investment banks. Ala LTCM

https://en.wikipedia.org/wiki/When_Genius_Failed

Re:Class Action Lawsuit Filed Against Robinhood by JumpCrisscross on Thursday January 28, 2021 @06:03PM (#25950802)
> Meaning 'too big to fail' applies to hedge funds now just like investment banks

LTCM wasn't making markets and it was done in by leveraged bets on Russian bonds.

The term you are looking for is systemically important financial institution (SIFI) [1]. BlackRock, with $9 trillion under management, is a SIFI. Citadel, with under $40 billion, is not.

[1] https://en.wikipedia.org/wiki/Systemically_important_financi...

Re:Class Action Lawsuit Filed Against Robinhood by totalZero on Thursday January 28, 2021 @11:00PM (#25953707)
Goldman received $10B in CPP funds on October 28, 2008 and repaid it on June 9, 2009.

JPM received $25B in CPP funds on October 28, 2008 and repaid it on June 9, 2009.

Aside from CPP, any bank that had assets affected by TARP purchases -- or by the potential that follow-on programs could affect those assets -- had its balance sheet ballasted in one way or another by government intervention.

All of the banks that survived will say they didn't "need" government intervention, for the same reason that they don't like to borrow from the discount window: it looks desperate to take help from the government. But technically both of those banks received an injection of liquidity via TARP.

Re:Class Action Lawsuit Filed Against Robinhood by mywittyname on Thursday January 28, 2021 @05:56PM (#25950722)
Wait, I thought Goldman came out ahead from the crisis.

They had the, "we didn't avoid the mortgage mess, we just made more money on shorts than we lost" and "we are very well positioned" emails that became evidence in the Senate investigation into the GFC. The ones are the namesake for the book/movie The Big Short.

Re:Class Action Lawsuit Filed Against Robinhood by briankelly on Thursday January 28, 2021 @06:30PM (#25951037)
As soon as they had a big enough short position and unloaded their long is when the spiral happened. They were the ones setting the swaps prices since they were the biggest market maker for mortgage backed securities.