Article: PayThink The pandemic has given launderers a new window

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PayThink The pandemic has given launderers a new window

Martin Cheek, 11 May 2021

The shift to digital has also made it simpler for people to find ways to game the system and commit fraud, money laundering, and other illegal activities.

Thanks to the coronavirus, the vast majority of us now spend more time online than ever. Tasks that we once performed in person, such as going to the grocery store or buying stamps, are now done in the comfort of our own homes. Even going to the bank has become a virtual process, with more and more people opting to deposit checks and manage investments directly from their mobile phones. Continue reading “Article: PayThink The pandemic has given launderers a new window”

Article: Robinhood’s Big Gamble

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Robinhood’s Big Gamble

Sheelah Kolhatkar, 10 May 2021

Early on the morning of January 19th, Cody Herdman woke to the vibration of his smartphone alarm under his pillow. He immediately checked the finance app Robinhood for the trading price of a company called GameStop. Herdman, who is nineteen, is a freshman computer-science major at Dakota State University, where until recently he played center for the Dakota State Trojans football team, and he had been investing in the stock market for a month.

Robinhood, which offers zero-commission trading in stocks and cryptocurrencies, pitches itself as an enlightened version of Wall Street; its stated mission is to “democratize finance for all.” Herdman’s friend Chase Bradshaw had introduced him to trading on the app, which now consumed much of the time that he used to spend playing video games. Continue reading “Article: Robinhood’s Big Gamble”

Article: What were the biggest short squeezes in history?

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What were the biggest short squeezes in history?

IG Analyst, 07 May 2021

From Piggly Wiggly to GameStop, short squeezes have been causing drama on the stock markets for more than a century. Read on to learn about the biggest short squeezes in history and how to take part in the next one.

What are short squeezes?

Short squeezes are market events where traders push up the value of a stock, forcing short sellers to buy (go long) to minimise their losses.

As the short sellers buy stock, the share value rises even higher, increasing the profits of the short-squeezing traders.

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Article: Occupy Wall Street 2.0

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Occupy Wall Street 2.0

Anonymous, 21 April 2021

It’s going on right now. Here’s your chance to get back at those Wall Street fucks who recklessly crash the economy again and again because you guessed it, they’re going to crash it again. Imminently. Except this time people on the internet caught on and the SEC is passing regulations to control the crash to make sure the hedge funds are the ones left holding the bag.

Create a trading account on Fidelity or something (but NOT Robinhood) and buy a share of Game Stop (GME) and hold it. Hold it while market crashes, except the price GME will go up. Supply and demand; you will be holding a precious share that a hedge fund will need to buy back from you. See, they created millions of “naked short” shares and traded them back and forth in an attempt to bankrupt GameStop so they could keep the money for themselves, tax free. But for the first time ever retail investors, (i.e. you) spoiled their plan by buying them up and holding them. The apes on r/Superstonk can explain it better than I can so do yourself a favor and learn. One share is hovering around $150 before takeoff. Then one share could quite possibly sell for millions and they will HAVE to buy it from you.

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Article: 14 Critical Lessons Investors Can Learn From The GameStop Story

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14 Critical Lessons Investors Can Learn From The GameStop Story

Forbes Finance Council, 20 April 2021

Investing in the stock market comes with risks, especially in the age of social media. Valuable information that every investor should be aware of—including the occasional volatility of the stock market as well as investment nuances such as short selling—came into the spotlight recently when Redditors banded together to inflate the prices of retailer GameStop’s (GME) stock.

As well as serving as a refresher on stock market basics, the GameStop situation is also a signpost pointing to emerging trends in investment and fintech. Current and would-be stock market investors can take away some important lessons from this story. Below, 14 members of Forbes Finance Council share what every investor should learn from the GameStop stock saga.

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Article: Massachusetts May Revoke Robinhood’s Broker-Dealer Registration

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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”

Article: Mass. Regulator Wants Robinhood Barred From State

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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”

Article: Bursor & Fisher Makes Play To Lead Robinhood MDL

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Bursor & Fisher Makes Play To Lead Robinhood MDL

Nathan Hale, 15 April 2021

Bursor & Fisher PA touted its experience in class actions and multidistrict litigation as well as multiple clients with significant financial interest as it made a bid Wednesday to lead multidistrict litigation over stock-trading app Robinhood’s decision to block users from buying certain volatile stocks including GameStop.

The boutique firm, which has offices in California, Miami and New York, filed its motion to serve as lead counsel alongside a request from six clients — Eric Quat, Aaron Fassinger, Mike Ross, Igor Kravchenko, Michael McFadden and Tenzin Woiser — to serve together as lead plaintiffs for the dozens of cases against Robinhood Financial LLC and other entities that were centralized earlier this month in the Southern District of Florida. Continue reading “Article: Bursor & Fisher Makes Play To Lead Robinhood MDL”

Article: Einhorn: “The Market Is Fractured And In The Process Of Breaking Completely”

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Einhorn: “The Market Is Fractured And In The Process Of Breaking Completely”

TYLER DURDEN, 15 April 2021

In many ways, David Einhorn’s Greenlight appears to be back to its “new normal” – in a letter sent to investors, Einhorn writes that Greenlight again underperformed the market and returned -0.1% in the first quarter, badly underperforming the 6.2% return for the S&P 500 index, before proceeding to bash the Fed, broken markets, Chamath and Elon, the basket of short stocks and much more.

That said, even though as Einhorn writes Greenlight made only a handful of portfolio changes and essentially broke even, “a lot happened. In general, the investment environment – especially from mid-February through the end of the quarter – was favorable as value outperformed growth, and interest rates and inflation expectations rose.” Continue reading “Article: Einhorn: “The Market Is Fractured And In The Process Of Breaking Completely””

Article: The Reddit revolt: GameStop and the impact of social media on institutional investors

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The Reddit revolt: GameStop and the impact of social media on institutional investors

Annabel Smith, 13 April 2021

The Reddit revolution in the US has drawn attention to the potential power that a growing force of retail investors can wield in stock markets when equipped by social media.

Amateur investors have increasingly engaged with retail platforms in the last year, partly due to the pandemic leaving them idol at home, but also due to the newfound onslaught of information through social media and access to the market through retail brokerages and platforms such as Robinhood. Continue reading “Article: The Reddit revolt: GameStop and the impact of social media on institutional investors”

Article: Robinhood Faces 458% Spike in Crypto Customers–Massive Increase from 1.7 Million to 9.5 Million in Q1 of 2021

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Robinhood Faces 458% Spike in Crypto Customers–Massive Increase from 1.7 Million to 9.5 Million in Q1 of 2021

Joen Coronel, 09 April 2021

On Thursday, Apr. 8, Robinhood announced a staggering surge in the number of its customers who engage in cryptocurrency trading. The financial services company which was founded on Apr. 18, 2013, has recorded that 9.5 million people have used the platform during the first quarter of this year.

The said number shoots up to a stupendous 458% increase in users, which only accounts for 1.7 million in 2020’s Q4.

How Robinhood Sudden Became Popular in Crypto Trading Continue reading “Article: Robinhood Faces 458% Spike in Crypto Customers–Massive Increase from 1.7 Million to 9.5 Million in Q1 of 2021”

Article: Robinhood Says 9.5 Million People Traded Crypto on Its App in Q1

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Robinhood Says 9.5 Million People Traded Crypto on Its App in Q1

Will Gottsegen, 09 April 2021

The online brokerage service Robinhood said on Thursday that 9.5 million of its customers traded cryptocurrency on its platform in Q1 of 2021.

That’s up from just 1.7 million in Q4 of last year, a 458% spike.

In a blog post, the company chalked up the numbers to crypto’s growing “popularity”: the global market cap of all cryptocurrencies has doubled in the past three months to over $2 trillion. Continue reading “Article: Robinhood Says 9.5 Million People Traded Crypto on Its App in Q1”

Article: Is Another Family Office Blowing Up: JPM Dumps 9MM Share Block Of ASO After Hours

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Is Another Family Office Blowing Up: JPM Dumps 9MM Share Block Of ASO After Hours

TYLER DURDEN, 07 April 2021

In the aftermath of the Archegos blow up, the biggest nightmare on Wall Street – where there is never just one cockroach – is that (many) more Archegos-style, highly levered “family office” blow ups are waiting just around the corner.

Well, in a transaction after the close that is sure to spark much heated controversy tonight and tomorrow morning, Bloomberg announced that JPMorgan was offering a 9 million block of Academy Sports and Outdoors (ASO) stock. Since this is virtually identical to what happened two Fridays ago when similar public BWICs by Goldman and other banks proceeded to unwind the Archegos portfolio, the immediate question on everyone’s lips is whether a second highly levered family office has blown up. Continue reading “Article: Is Another Family Office Blowing Up: JPM Dumps 9MM Share Block Of ASO After Hours”

Article: Rosen Law Aims To Lead Securities Claims In Robinhood MDL

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Rosen Law Aims To Lead Securities Claims In Robinhood MDL

Elise Hansen, 06 April 2021

The Rosen Law Firm PA on Tuesday sought to spearhead securities claims against Robinhood in newly centralized suits over the stock-trading app’s decision to block users from buying certain volatile stocks such as GameStop.

Cody Todd requested to serve as lead plaintiff for certain Robinhood Markets Inc. customers, with the Rosen Law Firm as lead counsel. The motion is the first such request since the suits were centralized in Florida federal court last week. Continue reading “Article: Rosen Law Aims To Lead Securities Claims In Robinhood MDL”

Article: Robinhood drops the confetti, but advisers aren’t convinced

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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”