1
Loading...
Society & Culture
Virtual Legality Episode 403

GameStop Won't Stop: Robinhood Lawsuit, Margin Calls, and Citadels

Vote
216 216 views
6m Jan 29, 2021
G

The GameStop story is the story that just won't stop. With Robinhood's restriction on buying GME and other securities yesterday, the company's action (and its financial connections) has drawn the eye of regulators, investors, and Congress, and even one instant lawsuit.

So what does it all mean? Why was Robinhood closing out investors throughout yesterday? And what exactly can Saved by the Bell's Zach Morris teach us about any of this?

When Congress is preening and investors are screaming, you've had a bad day...in Virtual Legality.

#GameStop #Robinhood #Lawsuit


HELP SUPPORT THE CHANNEL
STREAMLABS - https://streamlabs.com/richardhoeg
STORE - https://teespring.com/stores/hoeg-law-store


Discussed in this episode:
Nelson vs Robinhood [Group]
Filed January 28, 2021
https://www.courtlistener.com/recap/gov.uscourts.nysd.553175/gov.uscourts.nysd.553175.1.0.pdf

Best Execution and Interpositioning
FINRA Rule 5310
https://www.finra.org/rules-guidance/rulebooks/finra-rules/5310

"Bloomberg Users Suing Over Trade Limits Face High Legal Bar"
Bloomberg Law - January 28, 2021
https://news.bloomberglaw.com/securities-law/robinhood-customers-sue-over-removal-of-gamestop

Robinhood Customer Agreement
Updated December 30, 2020
https://cdn.robinhood.com/assets/robinhood/legal/Robinhood Customer Agreement (June 22) (1).pdf

"E-Trade confirms it halted GameStop and AMC stock, will let you buy some Friday"
The Verge - January 28, 2021
https://www.theverge.com/2021/1/28/22254863/etrade-gamestop-amc-stock-reddit-wallstreetbets-robinhood

"An Update on Market Volatility"
Robinhood Blog - January 28, 2021
https://blog.robinhood.com/news/2021/1/28/an-update-on-market-volatility

"Best take I’ve seen."
Tweet - January 29, 2021 - Joe Morrison, Jr.
https://twitter.com/JRMjunior1/status/1355141373792550912

"A Little GameStop/Robinhood Perspective:"
Twitter Thread - January 28, 2021
https://twitter.com/WallStCynic/status/1354998065393000449

"They are automatically selling shares."
Tweet - January 28, 2021 - Sunny
https://twitter.com/555Sunny/status/1354854993946406917

"Buying on Margin"
Investopedia
https://www.investopedia.com/terms/b/buying-on-margin.asp

"Introducing Robinhood Instant"
Robinhood Blog - February 23, 2016
https://blog.robinhood.com/news/2016/2/22/introducing-robinhood-instant

"S1E3: “Wall Street”"
Saved by the Blog - January 12, 2103
https://savedbytheblogdotnet.wordpress.com/2013/07/12/s1e3-wall-street/

"I seen this tweet and was wondering if this changes anything from today’s video?"
Tweet - January 29, 2021 - Kona Gaming
https://twitter.com/KonaPanchyu/status/1355045368967221250


CHECK OUT THE REST OF VIRTUAL LEGALITY HERE: https://www.youtube.com/playlist?list=PL1zDCgJzZUy9YAU61GoW-00K0TJOGnPCo

DISCUSSION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS LEGAL ADVICE. INDIVIDUALS INTERESTED IN THE LEGAL TOPICS DISCUSSED IN THIS VIDEO SHOULD CONSULT WITH THEIR OWN COUNSEL.


DESIGN WORK
Joe Ellis (Logo Design)
Chris Leroux (Motion Graphics)
For more information: contact Chris at @Chrisleroux on Twitter.

PODCAST VERSIONS ALSO AVAILABLE

Table of Contents

Timecode Title
00:00 Introduction
02:09 The Lawsuit
25:28 Capital Regulations, Exposure, and Margin Calls
38:55 Congress, Investigations, and Citadel
46:00 Conclusion

About Hoeg Law

The Hoeg Law Firm is a business law firm with big law experience and a small firm approach focusing on start-ups, technology, financing, and everything else a business might need.


0 Comments

Markdown is supported.