Robinhood is said to draw on bank credit lines amid tumult

Re:Robinhood is said to draw on bank credit lines amid tumult by alistairSH on Thursday January 28, 2021 @09:37PM (#25953003)

I don't think that's quite accurate either. It's not that RH's service is terrible, it's they had to cut trades to meet regulatory obligations. But, by only cutting trades in one direction. And that happened to be in the direction that favors their largest customer. And that customer also happens to be on the hook for much of the short squeeze... The optics are TERRIBLE.

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Re:Robinhood is said to draw on bank credit lines amid tumult by dcolkitt on Thursday January 28, 2021 @09:41PM (#25953046)

They didn’t cut trades in one direction. They closed new positions in both directions. Buys were still allowed to close short positions, just the same as sells were allowed to close long positions.

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Re:Robinhood is said to draw on bank credit lines amid tumult by alistairSH on Friday January 29, 2021 @08:52AM (#25957194)

Thanks for the clarification, I saw similar comments and assumed they were true.

Regardless, that doesn't change the optics to an outsider - the rich guys (hedge funds) get to stop their losses, potentially screwing the little guy.

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