Read on Twitter
Q: Any final thoughts? Do you wanna hear the real story from Vlad (Robinhood CEO) about what happened with Robinhood/Gamestop?
Vlad emerges from the audience.
@elonmusk: "Spill the beans man. what happened with Gamestop. The people demand answers!"
Vlad emerges from the audience.
@elonmusk: "Spill the beans man. what happened with Gamestop. The people demand answers!"
Vlad starts with PR bullshit "a little background, I'm the ceo of Robinhood"
Elon Musk cuts him off: " Yea we know! go!"
Elon Musk cuts him off: " Yea we know! go!"
Vlad: "Basically, Wednesday we had unprecedented volume... These so-called Meme stocks were going viral on social media."
"I'm sleeping. At 3:30am our operations team receives a file from the NSCC. "
National Securities Clearing Corporation (NSCC) See: https://www.investopedia.com/terms/n/nscc.asp
"I'm sleeping. At 3:30am our operations team receives a file from the NSCC. "
National Securities Clearing Corporation (NSCC) See: https://www.investopedia.com/terms/n/nscc.asp
Vlad: NSCC demanded they put up $3B based on various factors, which is 10 times more than typical.
Musk: Where they come up with that number.
Vlad: They don't make that public. Plus they add "discretionary component."
Elon: Discretion? So basically their opinion?
Musk: Where they come up with that number.
Vlad: They don't make that public. Plus they add "discretionary component."
Elon: Discretion? So basically their opinion?
Elon: What people want to know is something shady go down? Why did they demand so much money
Vlad - I don't think it was shady. It was just unprecedented demand.
Elon Musk: "Is anyone holding you hostage right now? Blink twice."
Vlad - I don't think it was shady. It was just unprecedented demand.
Elon Musk: "Is anyone holding you hostage right now? Blink twice."
Vlad: We alled NSCC and worked with them to lower it to $1.4B from $3B, with the condition they put in place a plan to "manage risk on those stocks"
Vlad: By marking the stocks "sell only" the NSCC dropped the deposit requirement to $700M.
Vlad: By marking the stocks "sell only" the NSCC dropped the deposit requirement to $700M.
Musk: It sounds like this org held a gun to your head. Give us this money or else. Did you sell your clients down the river? Or did you have no choice? If you had no choice, then people want to know why.
Vlad: Continues with PR crap.
Elon Musk: alright. I guess if you had no choice. you had no choice. That's understandable. But whoever put that gun to your head should have to answer to the public.
Elon Musk: alright. I guess if you had no choice. you had no choice. That's understandable. But whoever put that gun to your head should have to answer to the public.
Elon: How beholden are you to citadel. If citadel is unhappy - what happens?
Vlad: That's a rumor that they pressured us. That's just false. As far as we know, citadel not involved.
Elon is not buying it.
Vlad: That's a rumor that they pressured us. That's just false. As far as we know, citadel not involved.
Elon is not buying it.
Elon: Wouldn't citadel have a strong say with the NSCC?
Vlad: I don't know, I don't get into conspiracies.
Elon: Alright. But the people deserve answers.
Vlad: I don't know, I don't get into conspiracies.
Elon: Alright. But the people deserve answers.
Recap: Thanks to Elon Musk holding Robinhood CEO to the fire we have confirmation that Feds forced Robinhood to stop retail buyers from purchasing stocks buy putting up a collateral demand of $3 billion they know Robinhood couldn't meet.
*knew
