Re:Robinhood is facing nearly 50 lawsuits over GameStop frenzy
by a254613e on Wednesday March 03, 2021 @07:27AM
(#26327478)
Liquidity issue. Or rather, extremely close to it.
The CEO said he "doesn't want to use the L word" to describe it.
Basically they had to cover/deposit the purchase trades themselves, before they ran out of money to do so (liquidity issue) they shut down purchasing - then went on record on CNBC etc claiming that it's not a liquidity issue.
The CEO said he "doesn't want to use the L word" to describe it.
Basically they had to cover/deposit the purchase trades themselves, before they ran out of money to do so (liquidity issue) they shut down purchasing - then went on record on CNBC etc claiming that it's not a liquidity issue.
Interview with the CEO https://youtu.be/LqoJApzkaPU?t=404 where he confirms that's the case