AOC considering hearing over RobinhoodApp decision to block purchasers of GME
twitter.com
twitter.com
The extreme grandstanding for her Twitter followers got her boxed out by her own party. She’s now just the lady with the socialist hot take for the evening news without any real means to change anything.
She's also just survived her first election as an incumbent. Two years in the house as a freshman with a Senate and president that would block everything anyway is not a time scale where you can reasonably expect to have massive legislation passed.
Lots of zingers on Twitter - no experience - no compromise.
Well not that much of a watershed moment I guess.
She could have made her point without that phrasing.
If influential people from both parties can work together for issues like this, it will make the world a better and fairer place for the middle class and the poor.
I am so glad to see legislators and politicians from both sides, regardless of their motivations, getting together on the side of the people.
For the people, you know.
Now, I agree that there's a good first principles argument (and also a bad populist one) that people should be allowed to trade their own money into scams if they want. But the idea of proving damages here based on the idea that GME was going to CONTINUE TO GO UP after a 500% increase triggered by a short squeeze is just insane, sorry.
The notion that an exchange would protect a trader from trades is laughably absurd.
Is that a bad trade? Should Robinhood have stopped me from buying that stock?
And people already downvoting me...lol. Do you not realize you're just willing pawns?
Personally, I think they should have left trading open in cash accounts, but it is completely reasonable to block purchases of high risk shares especially on margin. Same as many brokerages limit OTCs, penny stocks, F shares, etc.
If someone really wants to buy more, it only takes a few minutes to open an account with another online firm. If they hadn't allowed sales and potentially prevented someone from stopping a loss that would be a much bigger deal, but for some reason AOC specifically called this out as suspicious.
Apparently for most brokers there is a waiting period of multiple days before trading becomes available.
Imagine a broker knowingly profits from executing trades that are part of a market manipulation- the SEC can and does come after them with huge fines. Usually it's years later in the unwinding of some shady hedge fund or corrupt sovereign wealth fund or pump&dump operation.
In this case, it's not a boiler room in New Jersey or a Malaysian government insider manipulating the market, it's a bunch of different people on twitter and reddit. It seems perfectly reasonable that the brokerage firms who are complicit in this have legitimate fears that the SEC will come after them later, and so are trying to limit the risk that they're deemed culpable.
A strong argument could be made that Tesla's stocks last year have been pumped up irrationally by funds last year too, and if a market correction comes the funds behind it will face zero to minimal consequences. Same in 2008.
At the end of the day, the differential rules for individual traders and big funds riles people up.
It's really hard to objectively defend Robinhood, it's not their job to be the gatekeeper for millions of small fish trading some peanuts. It's quite patronising.
USD 0.0035 / share, min $0.35 / trade.
Hedge funds shouldn't be bankrupted by a single loss like this. Its unacceptable. Capitalistic greed shouldn't be bailed out, the people bailing them out shouldn't have a position on the issue as well.
This will just become a stupid political grandstanding forum.
but trades are still going through if you use the 'make a trade' option in the dropdown next to the trading account balances on the accounts screen
pretty sketchy