Robinhood, in Need of Cash, Raises $1B from Its Investors

Re:Robinhood, in Need of Cash, Raises $1B from Its Investors by bluquark on Friday January 29, 2021 @02:58AM (#25955116)

Robinhood is a SIPC member. It rarely comes into play, but my understanding is that SIPC is there to ensure securities get back to their rightful owner in the event that something weird happens to the brokerage.

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Re:Robinhood, in Need of Cash, Raises $1B from Its Investors by cma on Friday January 29, 2021 @03:26AM (#25955249)

They are only covered up to $5 billion for the entire brokerage industry, it may be like 2008 and they all get turned into FDIC insured banks over night if tons of margin accounts fail.

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Re:Robinhood, in Need of Cash, Raises $1B from Its Investors by ummonk on Friday January 29, 2021 @04:28AM (#25955583)

Yeah we'd be looking at losses much bigger than that if the short-sellers go under due to a squeeze.

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Re:Robinhood, in Need of Cash, Raises $1B from Its Investors by jjeaff on Friday January 29, 2021 @04:00AM (#25955438)

And a max of $100k per account.

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Re:Robinhood, in Need of Cash, Raises $1B from Its Investors by swarnie_ on Friday January 29, 2021 @03:22AM (#25955229)

The issue is when?

If that takes several weeks or months in a highly volatile market its basically life or doing a flip.

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