Re:GameStop Short Squeeze: The Media Has It Wrong
by delaaxe on Monday February 01, 2021 @05:39PM
(#25995109)
> No, Ken Griffin did not call Janet Yellen and ask her to order Robinhood to shut down speculative buying.
Don't be so quick to absolve the elites of all wrongdoing. The NSCC is not a government agency but an industrial consortium of sorts. The formula they use to determine margin requirements for a given stock has a "discretionary" parameter that can be raised at will. Ken Griffin didn't need to ask Robinhood to delist GME directly, he just could've told his buddies at the NSCC to raise margin requirements so high that Robinhood & other brokers didn't have any other choice.
Don't be so quick to absolve the elites of all wrongdoing. The NSCC is not a government agency but an industrial consortium of sorts. The formula they use to determine margin requirements for a given stock has a "discretionary" parameter that can be raised at will. Ken Griffin didn't need to ask Robinhood to delist GME directly, he just could've told his buddies at the NSCC to raise margin requirements so high that Robinhood & other brokers didn't have any other choice.