Quote:
Originally Posted by KCUnited
Even if their TOS negate any potential lawsuits it feels like brand suicide. Seems other platforms halted buying temporary or set limitations but RH went all in. Add in the known connection to some of the players in this and they're taking the heat.
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Robinhoods exposure is probably wildly higher. Most of the capital at places like Schwab or Fidelity is probably in fairly safe retirement accounts. Sure, they have active trading accounts and some subset of that group was probably in these trades.
Also, from what I know, Robinhood makes it's money off getting people to trade and selling margin so they've gone out of their way to encourage some of this behavior. I'd be shocked if their subset of traders in these trades wasn't quite a bit larger.
I didn't see any "Vanguard cuts off trading of GME" headlines the last few days but they've went out of their way to sculpt a more buy and hold investor mentality.