It's a bit jaw dropping that they've launched this without talking to the SIPC to check that they agree with the statement that they provide FDIC-like protection on these accounts. I wonder what happened here…
AFAIK they haven't yet launched, it's not going to be until "early 2019". Not a defense of Robinhood, but their lack of (apparent) SIPC protections today do not necessarily imply they will be missing when they formally launch with actual customer deposits.
Yet it's being marketed as SIPC insured _today_.
You're right. I thought I had read it as "will be insured" but now that I go back and look at the content on https://checking.robinhood.com I see it reads "Every Robinhood account is SIPC insured up to $250,000 in cash and protected by modern encryption so you can rest easy and save confidently."
No bueno.
So it’s securities fraud?
Move fast towards to IPO exit, break users' personal finances. This is what happens when your growth team runs up against competent regulators.
Growth team = MBAs is that right?
Could just as easily be amoral technologists. Lack of ethics doesn’t discriminate.
Also, as in all of these products, at the end of the day a developer (or developers) typed in the code. "Whelp, boss said to do it!"
They almost have the UI changes to the phone app done, which is the hard part. What's a little paperwork?
This made me laugh out loud. "We just shipped the new tab bar item!"