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Started By
Message
re: Is Robinhood unstoppable? Do they just give us EVERYTHING we want?
Posted on 12/14/18 at 9:57 am to boosiebadazz
Posted on 12/14/18 at 9:57 am to boosiebadazz
Robinhood didn’t give key industry watchdog a heads-up about the launch of its free checking account
LINK
This sounds like a cluster.
quote:
The head of the non-profit insurer that protects investors from losses in the event a brokerage fails said he was as surprised as anyone to hear about Robinhood’s plans to offer checking and savings accounts for 3 percent interest.
SIPC President and CEO Stephen Harbeck told CNBC on Friday that he had serious concerns about the plan, and contacted the Securities and Exchange Commission’s trading and markets division about it. The SEC could talk to Robinhood about it as early as Friday, he said. Robinhood had not yet contacted SIPC, he added. The issue has “profound significance” for the financial services industry, Harbeck said.
Robinhood announced on Thursday it would offer no-fee checking and savings accounts alongside its brokerage accounts, with an enticing 3 percent annual interest rate. It was seen as a shot across the bow of traditional banks.
On Robinhood’s website, it explains that users need to sign up for a Robinhood account to get the checking and savings accounts. But it says users do not need to invest to use the accounts, something Harbeck says is contradictory.
LINK
This sounds like a cluster.
1
Posted on 12/14/18 at 10:13 am to lynxcat
Posted on 12/14/18 at 10:20 am to white perch
SIPC released a statement today about Robinhood-
quote:
"SIPC protects cash that is deposited with a brokerage firm for one limited purpose ... the purpose of purchasing securities," according to a statement from SIPC President and CEO Stephen Harbeck.
"Cash deposited for other reasons would not be protected," he added.
"SIPC does not protect checking and savings accounts since the money has not been deposited for a protected purpose."
Posted on 12/14/18 at 10:22 am to TigerintheNO
Looks like they need FDIC. I'm assuming this will take a while. Good thing we found out for them!
Posted on 12/14/18 at 10:23 am to bayoubengals88
Posted on 12/14/18 at 10:38 am to TigerintheNO
quote:Allow me to summarize the article you linked:
USAToday story about SIPC
Robinhood: "Our checking and savings deposits are insured by SIPC."
SIPC: "Nuh-uh."
Posted on 12/14/18 at 10:43 am to LSURussian
interesting. this would be a major screw up in an otherwise pretty reliable run of product releases.
Posted on 12/14/18 at 10:44 am to boosiebadazz
quote:
Tall must pay for gold.
no when they did gold they did a promotions robinhood instant thing that was the deposits without the margin account.
Posted on 12/14/18 at 10:49 am to LSURussian
it’s always too good to be true, but I appreciate they’re trying to shake things up. Guess my money will remain at Chase a little while longer
This post was edited on 12/14/18 at 10:50 am
Posted on 12/14/18 at 12:01 pm to boosiebadazz
What a massive frickup lmao
Expect lawsuits to follow
Expect lawsuits to follow
Posted on 12/14/18 at 9:25 pm to Thib-a-doe Tiger
sec is probably gonna be involved soon. apparently they never mentioned this to sipc at all.
hopefully they learn a lesson and check with regulators next time before they start an entire new account type.
doomsday scenario is possible here where sipc ends their coverage for robinhood. this would be bad for them. very very bad.
hopefully they learn a lesson and check with regulators next time before they start an entire new account type.
doomsday scenario is possible here where sipc ends their coverage for robinhood. this would be bad for them. very very bad.
Posted on 12/14/18 at 10:07 pm to oklahogjr
I don’t know if it will be that bad
But it’s going to put a damper on the whole thing
But it’s going to put a damper on the whole thing
Posted on 12/14/18 at 10:48 pm to Thib-a-doe Tiger
It's just a big red flag about doing their homework on what they promise and do. up until now they've been pretty solid on promising and delivering, then upgrading services.
SEC probably won't be as bad to deal with as their lead investors. i'm sure they're pissed given the amount of money they've been trusted with.
SEC probably won't be as bad to deal with as their lead investors. i'm sure they're pissed given the amount of money they've been trusted with.
Posted on 12/16/18 at 3:52 pm to oklahogjr
So, did they run out of accounts to give out, or did they shutter the banking idea after the big goof?
The app has changed and now has a “cash management” tab that just says “coming soon.”
The app has changed and now has a “cash management” tab that just says “coming soon.”
Posted on 12/16/18 at 3:55 pm to oklahogjr
Uber proved if you are popular enough in an old-guard industry that you can break the laws and regulators cave.
Posted on 12/16/18 at 3:59 pm to LSUtoOmaha
quote:
Uber proved if you are popular enough in an old-guard industry that you can break the laws and regulators cave.
But Uber didn't involve potentially people's life savings.
Posted on 12/16/18 at 9:53 pm to SG_Geaux
quote:
But Uber didn't involve potentially people's life savings
Posted on 1/4/19 at 7:51 pm to crazycubes
Any updates on the 3% savings accounts?
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