This article is from the source 'rtcom' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.rt.com/business/514371-robinhood-toast-gamestop-fiasco/
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Robinhood is ‘toast’ after GameStop fiasco, says real-life Wolf of Wall Street Jordan Belfort | Robinhood is ‘toast’ after GameStop fiasco, says real-life Wolf of Wall Street Jordan Belfort |
| (7 months later) | |
| The “knee-jerk” decision by Robinhood to stop the trading of high-flying stocks is “a bit troubling,” according to Jordan Belfort, the author of ‘The Wolf of Wall Street’. They could have just as easily raised the margin, he says. | The “knee-jerk” decision by Robinhood to stop the trading of high-flying stocks is “a bit troubling,” according to Jordan Belfort, the author of ‘The Wolf of Wall Street’. They could have just as easily raised the margin, he says. |
| “Originally, I understood it because they do have liability for sure. But what they did by completely eliminating buying, that was a bit of a red flag to me that there might be some other more nefarious things involved, like getting pressure from the people who are short,” Belfort said in an interview with Yahoo Finance. | “Originally, I understood it because they do have liability for sure. But what they did by completely eliminating buying, that was a bit of a red flag to me that there might be some other more nefarious things involved, like getting pressure from the people who are short,” Belfort said in an interview with Yahoo Finance. |
| He pointed out that the better move would have been “to actually not allow people to borrow as much money to buy.” By raising up the margin they would make it more expensive to borrow money which “certainly could have slowed down the buying without them having to stop it cold,” Belfort said, adding that they would have accomplished the same thing. | He pointed out that the better move would have been “to actually not allow people to borrow as much money to buy.” By raising up the margin they would make it more expensive to borrow money which “certainly could have slowed down the buying without them having to stop it cold,” Belfort said, adding that they would have accomplished the same thing. |
| Meanwhile, the bigger problem for Robinhood is that “now they’re going to be getting sued by everybody. And whatever side you’re on, you’ll say, I lost money because of the decision Robinhood made. And it’s going to be very, very hard for them to stay in business, I believe.” | Meanwhile, the bigger problem for Robinhood is that “now they’re going to be getting sued by everybody. And whatever side you’re on, you’ll say, I lost money because of the decision Robinhood made. And it’s going to be very, very hard for them to stay in business, I believe.” |
| Regarding the small investors, Belfort said what they’ve been able to do is “shocking” and “deserves an applause.” | Regarding the small investors, Belfort said what they’ve been able to do is “shocking” and “deserves an applause.” |
| “But they better be careful, because when it’s over, it’s going to be like catching a falling knife. And it’s going to drop precipitously. So, I just want people to be really careful when they’re playing in this space.” | “But they better be careful, because when it’s over, it’s going to be like catching a falling knife. And it’s going to drop precipitously. So, I just want people to be really careful when they’re playing in this space.” |
| READ MORE: Robinhood narrows trade restrictions list to 8 companies, including GameStop | READ MORE: Robinhood narrows trade restrictions list to 8 companies, including GameStop |
| A former stockbroker, Belfort served 22 months in prison after pleading guilty in 1999 to securities fraud and money laundering, as part of a scheme that cost investors approximately $200 million. He was portrayed by Leonardo DiCaprio in Martin Scorsese’s 2013 movie ‘The Wolf of Wall Street’. | A former stockbroker, Belfort served 22 months in prison after pleading guilty in 1999 to securities fraud and money laundering, as part of a scheme that cost investors approximately $200 million. He was portrayed by Leonardo DiCaprio in Martin Scorsese’s 2013 movie ‘The Wolf of Wall Street’. |
| For more stories on economy & finance visit RT's business section | For more stories on economy & finance visit RT's business section |
| Dear readers and commenters, | |
| We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system. | |
| Sorry for the inconvenience, and looking forward to your future comments, | |
| RT Team. |