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A comment on Class Action Lawsuit Filed Against Robinhood. Parent comment

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

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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...

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