This feels like RH is going to go under if they don’t make this move? Are they holding a lot of risk by not doing this or something?
And what repercussions would they face, surely they’ve flagged that risk and are doing it anyway.
And what repercussions would they face, surely they’ve flagged that risk and are doing it anyway.
Nothing worth worrying about. Every single case in the financial sector over the past two decades has resulted in fines that are a fraction of the profits. I mean, you had banks laundering money for cartels, Malasians were looted, etc etc... every single time they fine the culprits a tiny fraction of their profits.
The US has made criminal activity profitable, even if you get caught.
So Citadel and RH probably just made the smart move. Screw the rules, because the punishment for breaking them will be more than worth it.
Pretty sad to see most of HN willfully ignoring this fact and jumping to the defense of Hedge Funds and the billionaire class.
Having said that, there is no question that banks ruined the economy during the GFC, and didn't pay enough of a price, and hedge fund managers often make a killing, while paying very little in taxes, and HFT make a killing without providing any social value.
But the answer to that is not, I'm afraid, hyping some gaming stock and trying to squeeze a few shorts.
The answer is political action - voting, pushing for proper regulation. There are lots of proposals out there: stringent capital requirements for banks; closing the "carried interest" loophole; changing the structure of markets (eg auctions every minute instead of continuous markets).
Most users who don’t know anything about WSB probably
Idk who is still going to use RH but I know they exist.
ed. yes, on the chance that this wasn't just a margin call
Ultimately, they know that their SEC Fine will be less than the $50B+ in losses they face from their irresponsible naked short selling.
Did we learn nothing in 2008? Are we just going to continue to allow wall street to get away with fleecing everyone else in America / the world?