[PortleyFool]

Also from the above Money Stuff post: …Robinhood therefore did not expect and had not arranged adequate funding for the additional $2.2 billion Excess Capital Premium charge. On the morning of January 28, 2021, Jim Swartwout texted [Robinhood Chief Operating Officer] Gretchen Howard at 6:29 a.m. EST, writing “Huge liquidity issue.” … “Hypothetically what happens if a firm can’t meet their morning NSCC margin settlement,” an operations manager asked their former boss that morning in a text message. Nothing good! … As Robinhood employees worked through Wednesday, January 27, 2021, to code position limits for meme stocks, they struggled with how to frame the trading restrictions to the public and seemed to want to avoid giving their own clients the real reasons for imposing restrictions. A product manager at Robinhood Financial asked, “Do we have a customer facing rational we can provide? In response, a manager in Robinhood’s brokerage responded, “The real reason is firm risk and us needing to control the velocity of trading. …But we shouldn’t expose that.”