Massachusetts May Revoke Robinhood’s Broker-Dealer Registration
PYMNTS, 16 April 2021
Regulators in Massachusetts are taking steps to pull Robinhood’s broker-dealer license, alleging that the digital trading app lures inexperienced investors and puts their money at risk, Reuters reported. Robinhood responded to the charge with a lawsuit accusing the Commonwealth officials of being “elitist.”
Massachusetts Secretary of State Bill Galvin announced in December 2020 that the state was seeking to revoke Robinhood’s license — and that was before the GameStop trading frenzy. The state instituted changes in its fiduciary rules that took effect in September, prompting the Silicon Valley startup to file a lawsuit in Boston. The company also filed a motion for a preliminary injunction. Continue reading “Article: Massachusetts May Revoke Robinhood’s Broker-Dealer Registration”
Mass. Regulator Wants Robinhood Barred From State
Chris Villani, 15 April 2021
Massachusetts’ top securities regulator said Thursday he wants Robinhood LLC barred from doing business in the Bay State, citing the stock trader’s “cavalier” approach to enticing inexperienced investors into risky bets.
Massachusetts Secretary of the Commonwealth William Galvin is seeking to amend an administrative complaint he filed against the California-based company in December, saying the original fine and change of practices he was seeking was no longer sufficient. That was the first enforcement action brought under the state’s new fiduciary rule, which is stricter than regulations imposed by the U.S. Securities and Exchange Commission. Continue reading “Article: Mass. Regulator Wants Robinhood Barred From State”
Robinhood drops the confetti, but advisers aren’t convinced
Nicole Casperson, 06 April 2021
This week millions of Robinhood users may have noticed that the celebratory confetti graphics that used to rain down after each trade have been replaced with images of floating geometric shapes, according to an announcement from the company last Wednesday. Robinhood also changed the images it displays when a customer signs up for premium service Robinhood Gold or deposits money on the app.
The app’s infamous confetti graphic garnered heavy criticism of its gamification strategy during a Feb. 18 congressional hearing where Chief Executive Vlad Tenev testified. Continue reading “Article: Robinhood drops the confetti, but advisers aren’t convinced”
Something ‘Systemically Wrong’ With GameStop Options Trading, Says Massachusetts Securities Regulator
Shivdeep Dhaliwal , 27 January 2021
There is something “systemically” wrong in the options trading of the stock of GameStop Corporation GME 0.1%, according to Massachusetts securities regulator, Barron’s reported Tuesday.
What Happened: The Secretary of the Commonwealth of Massachusetts William Galvin told Barron’s that he has kept an eye on the stock. “I’m concerned, because it suggests that there is something systemically wrong with the options trading on this stock.”
The publication is awaiting further clarification from Galvin on the specific nature of the problems in options trading. GameStop shares soared over 134% in regular and after-hours trading and have risen over 678% since 2021 began fueled by a Reddit forum. Continue reading “Article: Something ‘Systemically Wrong’ With GameStop Options Trading, Says Massachusetts Securities Regulator”
Complaint Over Auction Rate Securities Market Details Brokers’ Greed
Courthouse News Service, 5 September 2008
In a federal filing replete with lurid examples of document destruction, inside trading, naked greed, lies and market manipulation, the City of Baltimore joins the long list of plaintiffs demanding treble damages from Citigroup, UBS, Merrill Lynch, Morgan Stanley, Bank of America, Lehman Bros., Wachovia and other banks that conspired to prop up the auction rate securities market, until it collapsed in a $300 billion rubble heap from which investors are still digging out.
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