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Message: [QUOTE="Forza Azzurri, post: 3707557, member: 1452"] This is where the nuance of what is being asked and answered is important and, more importantly, the messaging. If Vlad responds positively to the liquidity issue question, "Robinhood in liquidity crisis" becomes the headline and, for RH, it could be 2008 redux. By responding negatively to the liquidity question but saying they had to meet financial obligations imposed upon them, they avoid that headline. I don't blame him. I would rather be a villain in the media than out of business and shut down. The reality is that it was 100% a liquidity issue. RH had to go out and raise 1 BN of capital OVERNIGHT from their investors PLUS draw down on all their credit lines in order to meet the new DTCC collateral requirements. That is 100% the definition of a liquidity crisis. The reason RH did not freeze selling is that selling reduces the collateral requirement. Regarding the looking out for customers statement, I am out of my depth in terms of its veracity. Had RH not been able to meet its collateral requirements and been forced to shut down, I am pretty sure that all RH accounts would have been frozen and that investors would not have had access to their accounts. What I don't know is to what extent investor assets are ring-fenced in a situation like that. For example, fully paid for assets probably are. But if margined assets are held in street name, rather than in the investors name, do they then become part of the assets of the firm that are used to satisfy creditors? I do not know. And I don't think RH customers would want to find out. RH having to shut down would not have been good for anybody. I don't believe for a minute that RH was solely looking out for its customers. RH did what it did to stay in business. I have a strong suspicion that doing what it did to stay in business was ultimately also in the best interests of its customers based upon what I elucidate above. Actually, what this demonstrates is that the elimination of commissions has made the market more accessible than ever and that the retail investor can now be a force in a way that they never were before. Up until last week, the retail investor has always been irrelevant. Last week proves that is no longer the case. [/QUOTE]

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