Robinhood forcibly selling shares of GameStop without users’ consent

submitted by Tom_Bombadil from noqreport.com

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[–]Tom_Bombadil[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (3 children)

I don't know if this is true, or not.

Hopefully, it isn't accurate.

[–]Drewski 6 insightful - 1 fun6 insightful - 0 fun7 insightful - 1 fun -  (1 child)

This article on The Daily Mail claims they were forcibly selling shares if they were bought on margin. Seems very unethical if not illegal.

[–]dsolimano 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

If they were margin shares that makes more sense, due to the vol a lot of clearing firms increased their margin requirements to 100% meaning basically you have to pay cash for the shares. I think normal operations would be to restrict the account ask the clients to wire in more cash, but I guess if they had trouble borrowing money to finance the positions, they could conceivably have to sell the shares with the margin requirements increasing so fast.

[–]StrategicTactic 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Dont know for sure, but I put up a twitter link earlier to someone saying the same.