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by vincentmarle 1968 days ago
We are starting to see the limits these apps have, they are just not cut out to be considered a professional broker.

It's funny they worry so much about (short-term) liquidity, while their long-term brand & trust & customer base erodes irrecoverably by the minute.
2 comments
crazygringo 1968 days ago
Huh?

They're worrying about short-term liquidity in order to provide serve in order to maintain their brand, trust, and customer base.

That's... the entire source of the problem. Meeting capital requirements in order to keep running.

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vincentmarle 1968 days ago
If you have a CEO that keeps publicly lying and downplaying their actual issues, then yes, you do erode the trust.
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crazygringo 1968 days ago
Where did the Robin Hood CEO lie? Or what issues have they downplayed?

I haven't seen any actual reporting of any lies. Just a bunch of people speculating they were colluding in halting trading, when the actual reason was later demonstrated to be capital requirements.

If you have actual recent examples of lying, however, I'm curious.

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vincentmarle 1968 days ago
> Where did the Robin Hood CEO lie? Or what issues have they downplayed?

Let's see, where do I start.

Official blog announcement: https://blog.robinhood.com/news/2021/1/28/keeping-customers-...

No mention of liquidity requirements whatsoever.

Cuomo Interview: https://twitter.com/CuomoPrimeTime/status/135498974615878451...

Cuomo: "If you don't have a liquidity issue, but you have to stop the trading because you couldn't meet certain capital requirements, how does that reconcile with itself?"

Vlad: "We feel pretty good about the situation"

CNBC Interview: https://www.youtube.com/watch?app=desktop&v=cuCcchMOsKE

Sorkin: "It sounds to me though, that you're suggesting that there was a liquidity problem"

Vlad: "No, no, there was no liquidity problem."

Elon Musk interview:

Musk: “hey what happened with robinhood”

Vlad: “uhhhh I don’t know I was asleep at home”

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swampthing 1968 days ago
The funny part is people migrating to brokers who are even less prepared than Robinhood, not realizing that the only reason the same thing didn't happen to those brokers is because they didn't have the volume that Robinhood had.
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