Robinhood Caught: $70 Million Fine
AMC + GameStop Analysis
https://www.wsj.com/articles/robinhood-agrees-to-pay-70-million-to-settle-regulatory-investigation-11625063765
https://www.financemagnates.com/forex/brokers/robinhood-sets-aside-26-million-to-cover-sec-finra-fines/
Let me know your thoughts on Robinhood, AMC, and GameStop in a comment below!
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gamestop, gamestop stock, gme, gamestop short squeeze, gamestop stock explained, gamestop explained, amc, amc stock, amc stock prediction, amc live, amc stock live, amc short squeeze, amc squeeze, amc price prediction, gme stock live, gme stock prediction, gme stock analysis, gme stock explained, gme stock short squeeze, gme stock news, tesla, tesla stock prediction, tesla stock analysis, tesla stock today, matt kohrs, matt kors, stocks, stock market, investing, trey trades
AMC + GameStop Analysis
https://www.wsj.com/articles/robinhood-agrees-to-pay-70-million-to-settle-regulatory-investigation-11625063765
https://www.financemagnates.com/forex/brokers/robinhood-sets-aside-26-million-to-cover-sec-finra-fines/
Let me know your thoughts on Robinhood, AMC, and GameStop in a comment below!
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#AMC #GameStop #RobinHood
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Video Topics:
gamestop, gamestop stock, gme, gamestop short squeeze, gamestop stock explained, gamestop explained, amc, amc stock, amc stock prediction, amc live, amc stock live, amc short squeeze, amc squeeze, amc price prediction, gme stock live, gme stock prediction, gme stock analysis, gme stock explained, gme stock short squeeze, gme stock news, tesla, tesla stock prediction, tesla stock analysis, tesla stock today, matt kohrs, matt kors, stocks, stock market, investing, trey trades
What's going on moon gang we're back at it again with another episode of dumb money now, in today's episode, of course, we'll be talking about amc, gme, the short interest, the failure to delivers and a quick chart breakdown, but i really want to focus what's going on With robinhood, because it seems as if some of their past actions are finally catching up to them with all that being said, let's hop right into it. Now, both amc and jimmy did close. The day out in the green amc was at 56.68, while jimmy was at 2, 14 14.. So here's what's going on with robin hood.
This was reported earlier today by the wall street journal, of course, i'll make sure to link this article in the description of the video below robin hood agrees to pay 70 million to settle regulatory investigation. Robin hood has agreed to pay nearly 70 million to resolve sweeping regulatory allegations that the brokerage misled, customers approved, ineligible traders for risky strategies and didn't supervise technology that failed and locked millions out of trading the financial industry regulatory authority. The frontline inspector for broker-dealers aka finra unveiled the settlement on wednesday, robin hood, neither admitted nor denied the claims to my understanding. This is how this kind of stuff goes, like, they don't admit guilt, but finally, it seems like some other actions are catching up to them.
Finra alleges a series of failings by robin hood, which agrees to pay 57 million five and 12.6 million in compensation for harmed investors. So what's going on here, basically, they were allowing people to do very risky options. Training who did not have the knowledge to do it. So they were inappropriately approving people, they weren't showing people's proper p l, and that aspect was actually very sad.
It led to a very, very sad outcome and then finally, they had a series of outages that no one only stopped people from being able to access their accounts, but even brought down their customer service contact. So people didn't know what was going on and there was no way to reach out to them to see what was happening with their money. So none of this actually ends up relating to what happened at the end of january or early february, when they stopped the buying of gme, amc and other related stocks that is actually still being heard by judges and being argued by lawyers. That's still in the.
I guess the legal system, as of now in 2019, the broker paid 1.5 million to resolve finra's claims that it didn't take adequate steps to ensure it got the best prices for customer orders and, in fact, actually citadel securities also got hit for a very, very similar Thing in december, robin hood agreed to pay 65 million to the sec to settle claims related to its disclosures for payment for order flow or accepting revenue from high-speed trading companies that pay for its right to execute retail investors orders. This comes back to hft's, high frequency traders. That's what this high-speed training thing is all about. Robinhood said, after reaching the sec settlement that the problems found through the investigation do not reflect robin hood today. Now i'm no lawyer - and i don't work for robin hood, but i kind of call bs on this. One u.s securities laws allow payment for order flow as long as the brokerage companies relationships and any conflicts of interest are disclosed accurately. In my personal humble opinion, i don't think payment for order flow pfof should be allowed at all, and so, like i said, some of their actions, some of their actions are finally catching up to them. If you ask me, i think they should have got hit more, but if you ask them uh, this was a tweet from charles payne.
He related to this article. I think they thought they were going to pay less, because they only set aside 26 million to cover the sec fin refines. So i they sent a about a third, so i think they thought they were going to get away without such a hefty payment um. So that was a blow to them, but i think they like.
I said i think that they actually ended up deserving more speaking of amc. Here's a quick look at the chart. This has not changed much. This is exactly what we've been talking about now for about two and a half weeks, we're just consolidating you know.
We have ran up. We had this flagpole and then lower highs, higher lows, we're in this bullish, pennant we're waiting for the breakout, patience will pay and just to give you, i guess, maybe ease your mind if you're feeling a little bit antsy. Please! Please do not forget that ever since this recent rally started on may 21st until this very moment we are up 370 percent. So to put that another way after this run-up, we are now consolidating at a gain of 370 percent, which is it's beyond amazingly good.
That is it's. It's jaw dropping the fact. Usually, when you run up like this, and then you see this series of three red days, that's kind of it there's run up it shoots up, and then it comes cratering back down the fact that it was able to catch itself at 41, push up to 64.65 And now we're consolidating in the high 50s that shows how strong the support behind the sock truly is. Over the past month, amc is up 74 and from the start of the year, until this very moment it's up over 2500 percent, absolutely amazing in terms of its or text data.
Today there was a return of 4 million shares borrowed shares of 900 000 and a return of 5 million. To me, this does make sense because remember with return shares return shares is two separate things, and i think i want to clarify this. Just because i know it's been discussed more commonly in the community. Lately.
Remember return shares two different things. One potential option is shares that went on loan were never shorted and just returned. The second options are shares that went on loan were shorted covered. You have to wait two days because of the t2 settlement and then return. None of this is delayed. The numbers on top are updated every morning and then live updates are truly live. This block right here, it's not shorts covered. This is return shares if it said shorts covered, then.
Yes, that would mean that it's delayed by two days but return shares. Remember it's actually. Two different things and i see what you're saying but like they are actually returned today, but it gives you an indication of maybe what some of the shorts did two days ago so two days ago. Is it reasonable that some of the shorts were covering? Well? Let's just quickly check out the price action so two days ago.
I think it is probable that remember there's a hundred million shares on loan and on this day june 28th it traded a hundred million, and we had this very nice run from 54. All the way up to 59 that five dollar run yeah. I do think that a small amount of shorts covered and that's five percent of the shares on loan five percent of the volume for the day. If this is what a mere five percent covering gives us man, i am more than happy to take that, so it is a little representative and in my mind it does add up.
As you can see, we have this nice trend. The estimated short interest is spiking up as of now it's around 18.4 percent and the shares on loan has gone from 78 million all the way up to over a hundred million ding ding ding ding ding. Another thing i want to point out uh, so we have the new failure to delivery report that came out today. Remember it's always lagging kind of by two weeks at best.
So today, at the end of june, we got the first half of june and let me zoom in here you can see after this beautiful day where we ran 95. The very next day there was a big spike in failure to delivers, and now that we're talking about amc being on that threshold list and by the way, if you want to know more about that, make sure you check out my update video from yesterday. I kind of did a deep dive of what was going on with threshold securities and what it means to actually be on the list, but anyway we know for a couple days in a row, this has been 2.5 million, at least like a conservative like low estimate For days in a row, so we have to wait till mid july to get the end of june, but i'm excited when that comes out to see how high these ftds truly truly are. Now, let's talk a bit about gamestop, gamestop, oh, that was just from earlier today on the stream.
What can i say i just like the stock, but anyway we have still it's the exact the way we have that same technical setup with amc. Not much has been changing with gme. We have the sort port between 200 and 210 right now we're actually building the support up higher instead of 200, it's clearly building at 210, we're looking for the breakout above the trend line around 225 and then hopefully a test of 240. over the past month. It's down 14, but from the start of the year until now, it's up a pretty considerable, a thousand percent. That's actually an amazing amazing return in terms of its numbers. Today there was a net return of 851 000 shares. The short interest is 10.67 shares on loan.
If you do that, it's probably 8.25 million utilization around 23 and once again the short interest shares on loan pretty much flat and if we take a look at its failure to delivers just to give you an idea of how wild this can get. This is insane back here back in january, early february. These ftds on gamestop were absolutely ridiculous and my i wanted to show you this, because i wouldn't be that surprised if we see a similar scenario starting pretty soon with amc and when i say soon i mean like. Finally, when we get the data because, like it's just so incredibly frustrating it makes me want to pull my hair out, that we don't get this information soon like.
Why are we always at best behind by two weeks, so incredibly, frustrating? I don't know why we can't get these numbers, but um. I i like, i said i don't think we're going to be that surprised to see similar spikes like just a huge run-up in amc stock when it's finally finally reported so overall another good day to be a member of ape nation amc in the green gamestop. In the green, i'm excited to see how this plays out, i'm waiting for amc to break out of that bull wedge and i'm looking for gamestop to get above a trend line and then really see how it reacts to 240 250.. We were talking about the short interest, it seems like amc's just keeps going up up and up while gamestops is a little bit more consistent and no matter what the bears do.
They cannot beat the stock down and what's kind of exciting specifically about today is the fact that robinhood. Finally, finally, their actions are catching up to them. We all know that they're doing duplicitous things uh illicit things that, like i don't think i don't the mythological story of robin hood. It's weird to me that they call themselves that, because it seems like they're doing the exact opposite so yeah.
I think it's good that they got the fine. I think they deserved a bigger fine, but i'll. Take it it's better than nothing. So, overall, that's what's going on right now on team, dumb money, that's what's going on in eight nation! Let me know if you enjoyed this video and until next time for me and share best of luck in the markets.
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Nice video, Thanks Matt! I was able to build a big income stream during the covid-19 pandemic investing with a professional broker, Mrs Elizabeth Wesley.
Does any of that $70M go to the retail traders who were wronged by RH? Or does it just go to pad the SEC’s sexual harassment claim, party, and travel fund?
The nondescript swing undoubtedly trot because revolver strikingly smoke outside a painful apple. utter, dazzling lumber
Luckily I steered clear of Robinhood because I heard their fees were high and people on the livestreams I frequent have said they got delayed in placing orders when they had an opportunity to buy low, so I always thought that was suspicious.
Some of the other stuff is wrong that they did, but as for "allowing customers approved to buy options who are not experienced" I don't think that's a platform's place to decide. Nobody is born knowing this stuff and you have to start somewhere and at some point you have to try it. I think that should be the customer's choice what investments they want to have. People should always do as much research as they can and ask questions of those who have more experience about anything they don't understand. Even experienced people can lose their shirts on companies that are publicly traded, especially given the fact that it depends on how well the company does. If a company decides to go out of business on a dime like Shop-vac did with no notice then people are left holding the bag. I still have a vaccuum I can't get bags for because of that and I'm sure investors were really pissed!
NOT Financial ADVICE but a good read
For all of the new baby apes. I know a lot of you have questions, and I thought it would be helpful to provide you with some overall context to understand the significance of the movement you just joined.
Here’s the cliff note version. Covid hit last March and a couple of big hedge funds concocted a plan to drive AMC into bankruptcy by “shorting” it and make a ton of money in the process.
You “short” a company when you think the value of the stock is going to go down. When the country locked down and AMC closed their doors and their revenue literally went to $0 overnight, it was a no brainer play for the hedge funds.
So they started borrowing millions and millions of shares from brokers and sold them “short” at the market price at the time, and they pocketed the cash from the sale. The idea is that the stock price will drop, you can buy them back later at a lower price, and then return the borrowed shares to the broker and keep the difference. If the company goes bankrupt, the stock goes to $0 and they don’t have to buy anything back at all and keep everything. This is what they were banking on. They’ve done this to company after company over the years, and they saw this as a sure thing as any.
Well a bunch of people on Reddit (affectionately known as “Apes”) noticed they were trying to drive AMC, GameStop and many other retail and mortar stores into bankruptcy, and banded together to buy up all the available shares, driving up the share price. This resulted in the mini squeeze in January. But Apes didnt sell after that. And the hedge funds didn’t cover their short positions either (I.e. buy back the millions of shares they had borrowed and sold short).
The Apes kept buying and buying, and holding and holding, and once the real shares were all bought up, the hedge funds doubled, tripled and quadrupled down on their short position and started making synthetic shares (IOUs) and selling those shares into the market trying to drive the price down. When the price dropped, instead of selling like the hedge funds wanted them to, Apes said “thank you very much for the discount” and kept buying more and holding. Nobody has sold for the past 5 months since the movement really got started in January, and more and more people are jumping in and adding more everyday.
Now because of all of the synthetic IOU shares the hedge funds have created to keep shorting AMC, us Apes likely own more way more shares than are actually supposed to exist (as much as 6x-8x by some estimates). But real or synthetic, each share the hedge funds sold short is a liability on their books that must be bought back in order to close out their position.
They literally have hundreds of millions of shares, possibly billions, to buy back, and we own them all. They have to buy them back eventually, and every day that the borrowed short shares are still on loan, the hedge funds are paying interest to the brokers they borrowed them from. Meanwhile it costs us nothing to hold.
Things started to come to a head a couple weeks ago because the interest rate on the borrowed shares was reported to be as high as 250% (1-2% is normal for your average stock), so the hedge funds are collectively paying hundreds of millions of dollars every day just to hold their position, and a lot of them are starting to miss the payments and margin calls could be coming very soon.
That’s when the fun starts. At that point, the broker forces them to buy back all of the hundreds of millions of shares they have borrowed and sold short, because the broker doesn’t want the hedge funds’ recklessness to fall onto them. And remember, the Apes own all the shares and aren’t selling. The hedge funds can only buy a share for what an Ape is willing to sell it for, and us Apes really love our shares.
Once the margin calls start, the computers just start buying back all of the shares at the best available price no matter what that price may be. They all have to be bought back. Everything must be settled. And if the cheapest price an ape is willing to sell for is 1,000, or 10,000 or 100,000, well then that’s what the hedge funds will be forced to buy the borrowed shares back for in order to close out their position.
Apes are going to hold and hold and hold driving up the price further and further to make the hedge funds bleed as much as possible until they are inevitably forced to buy back their millions of shares. They will need to buy our shares, and we set the price. And remember, it costs us nothing to hold. This movement has been building for the past 5 months, but you just heard about it yesterday. One thing Apes don’t do is set dates for the squeeze. Nobody knows when it will happen, all we know for sure is that the math says it’s inevitable as long as we hold.
I only see three possibilities as to how this all plays out:
1. AMC goes bankrupt and the hedgies win (please note this is not going to happen. AMC has enough liquidity to last them through 2022 and the most passionate shareholder base in the universe. Not to mention a pretty badass CEO who has completely embraced the new shareholder base)
2. Hedge funds are somehow able to meet their daily margin payments to avoid being margin called, and they strategically close out their short positions over time, causing a sustained Tesla type squeeze over a period of a year or more (remember, apes aren’t selling until we’re at the moon)
3. Hedge funds will be margin called and forced to buy everything all at once and we’ll have the most violent squeeze in the history of short squeezes. The price is infinite as long as apes hold.I wouldn’t bet on #1, #2 will require patience, and #3 will be absolute insanity (and in my personal non-financial advisor opinion is the most likely outcome). Either way, we’re winning the battle. This beautiful movement is growing by the day, and we can hold longer than they can.
Never before has anything like this happened where millions of regular people have been able to band together to take on the billionaires who have been screwing them over time and time again
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Comfortably and patiently waiting with 6900 + shares
Really don't see how they can cont loosing this kind of $ daily and with growing scrutiny
Been watching you live and how do I join the chat during the live viewing?
Thanks for everything you do, you have made an enormous difference and I have been learning lots!
Love your endless positivity, as I agree, we can't let the frustration get the better of our emotions.
I've been a new trader since Jan 2021, joined in on the GME saga then and been an Ape since.
Don't understand options or the many other elements to trading so any suggestions on how I can learn more of the fundamentals of trading? Thanks and keep up the amazing work!!
So here we go again, they helped save the hedgies ass from losing trillions to retailers and they get a slap on the wrist for it, but i if a retailer would have manage to do the same we would have been sent to prison for life, the same laws do not apply for the elite becasu the laws are created FOR them AGAINST us!
My robinhood today’s return is different when i compare it to my today’s return individually if that makes sense , any questions or comments ? Thank you
Hodling till it shows its as high as it can go because I feel we all deserve 100K! All the families that have been hurt from 2008, kids suffering, families suffering, HF causing all this, people who lost their lives and can't come back because they put all their money in this, and for making the stock market right…. HODLING! I am so upset and disgusted they are able to do whatever as we follow the laws and regulations to the T. The longer they take to cover the more I know I am doing right by hodling for MY family and OTHERS.
I still use RHood occasionally but only when I want to do spreads. Webull has been much better for Day trading.
I want to move my shares from robinhood but don't wanna get caught not being in if we have a good day
Good they are getting acknowledged finally for doing something wrong. However, 70 million is small compared to what they made, after selling their customers data.
Does anyone know what happens to that 70 million after the SEC collects it?? Is it going to the family of that man who committed suicide and to the customers or will the SEC members all be getting major bonuses this year? I honestly do not know
Why the fuck does the government get their money in fees when we are the ones fuckin losing it
Check out Jackson Hunters latest post…. "its all in the bonds, the infinite short loop and how it ends." Great DD by AMCBiggums.
Has anyone else noticed the discrepancy between the actual ticker and the buy page on crypto?
Whether you buy or sell the price changes in Robin Hood's favor every time you can pull it up on two screens and just see it it's so blatant and it's not disclosed which means you have to do a limit order to get your money where you want it because you can't just do a market order. And then limit orders don't go through unless it goes past your goal by a certain amount.
Robinhood wasn't fined they settled the dispute imagine if they were investigated… lol they would have been fined in the billions.
It's symbolic politics, nothing else – just keep holding on to your stocks when the price goes down, then buy some more. It's my own money, so I hold on to my shares, I do not panic because it goes in "red". I hope there are some authorities that go further and deeper into this, and now remember that we own 80% of the shares in AMC, that is strength.
Yet again, another concise, brilliant breakdown of the daily SHITSHOW from the media and their OVERLORDS, the dirty money.