Re:Robinhood is said to draw on bank credit lines amid tumult
by slg on Thursday January 28, 2021 @07:30PM
(#25951801)
>Bankruptcy is legal and investors understand such risks.
The type of retail investor that is using RH doesn't understand the bankruptcy process and certainly wouldn't be happy to be stuck in SIPC limbo while the value of their stock plummets. When it comes to what is best for RH users, this seems like it was one of the least bad options among a collection of horrible options that are due to the way RH is managed.
Re:Robinhood is said to draw on bank credit lines amid tumult
by franklampard on Thursday January 28, 2021 @10:40PM
(#25953555)
> The type of retail investor that is using RH doesn't understand the bankruptcy process
That's your rationale for manipulating the market? SMH
For the retail investors, if a broker didn’t foresee systematic risks and cannot clear, the better thing can happen is the broker own up to mistakes and go bankrupt.
Bankruptcy is legal and investors understand such risks.