If you are an individual investor and your broker makes a margin call, you might have to sell. What happens if Goldman/JPM makes a margin call to your entire brokerage? Robinhood sells your portfolio to pay back its loan and says 'here eat this arbitration agreement peasant.' https://twitter.com/themaxburns/status/1354873559663960066
Elizabeth Warren is correct here. It goes deeper than Robinhood in all likelihood, but yes, Robinhood can steal all your money and then hold a trial in front of arbitrator it hires. All corporations can do this, because of the GOP and the Supreme Court. https://twitter.com/therecount/status/1354891756735754243
Why is Robinhood selling its customer's portfolios without asking?
Robinhood has borrowed A LOT of money through a revolving credit facility, and its "line of credit is collateralized by users' free margin securities."
Zoink! https://cdn.robinhood.com/assets/robinhood/legal/FY19%20RHS%20Audited%20Statement%20of%20Financial%20Condition.pdf
Robinhood has borrowed A LOT of money through a revolving credit facility, and its "line of credit is collateralized by users' free margin securities."
Zoink! https://cdn.robinhood.com/assets/robinhood/legal/FY19%20RHS%20Audited%20Statement%20of%20Financial%20Condition.pdf