Robinhood is Sending Big Checks to Customers.

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Robinhood가 FINRA와 합의해 약 7000만 달러(배상금 1260만 달러+벌금 5700만 달러)를 내며, 잘못된 현금잔고·마진 오표시, 2020년 3월 장애 등에 대해 고객 보상이 이뤄진다는 내용. 영상은 Robinhood 사업 전망(향후 성장 지속, IPO 전 리스크 해소)을 긍정적으로 보며 자사 추천 링크(Weeble)를 홍보함. 투자 방향성 예측 대상 자산은 Robinhood 관련 직접 언급뿐이며 열거된 종목 중 해당 없음.

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01. quick reminder the 40 off coupon code for my amazing programs on building your wealth including stocks options and trading expires tonight on june 30th take a look at that link below hey everyone me kevin here thousands of people are about to get checks from robin hood and i have a list of exactly how much money everybody is getting but first let me give you a quick breakdown as to what that is happening so basically robin hood and finra entered into a settlement agreement where finra gets to go hear world these are all of our complaints about robin hood and robin hood basically goes okay we don't agree or disagree but okay we'll pay you 70 million dollars okay it's kind of what's happening here but we should go into some of these details just know that robin hood is not officially responding to these items here maybe they will separately i don't know if they can or can't i'm not an attorney but we are going to go through at least what finra's version is and then let's go through to see who's getting paid and for what and how much so here's the thing finra and we're going to go through the legal brief as well where we see some of the allegations finra is demanding that robin hood pay 12.6 million dollars in restitution to customers and 57 million dollars in penalties for screwing up finra is very unhappy and the allegations they make are number one robin hood misled folks in terms of how much negative buying power they had how much actual cash was in their customer accounts and by misleading them leading to in some circumstances potentially panic selling or losses that wouldn't have otherwise occurred additionally robin hood also ran into some issues where folks believed they had margin trading turned off but they still ended up somehow getting involved in a margin trading despite believing they had margin turned off or in the specific case in june of 2020 somebody just saw a screenshot a 20 year old college student saw this particular screenshot of their buying power sitting at negative 730 000 on a 16 000 account this was during an option execution time frame where funds had not settled yet so they got hit with the debit and not the credit yet and so their account showed a negative 730 000 balance despite having margin turned off and so robin uh or finra clearly identifies that instances like this have led to many many many many big losses for customers in fact they claim that thousands of customers suffered more than seven million dollars in total losses and if you lost money because of inaccurate negative cash balances you are entitled to a restitution in fact seven million dollars is being returned to folks who lost money because of inaccurate negative cash balances additionally finra alleges that robin hood was somewhat lacks in how they approve people for options trading essentially saying that their options account approval bots ignored many red flags indicating that certain accounts or certain individuals probably shouldn't be eligible for options trading finra is also very upset about the most serious outages that occurred between march 2nd and march 3rd with robin hood where customers lost tens of thousands of dollars and finra is requiring the firm to pay more than 5 million dollars in restitution to people affected during that time frame so if you were affected and you lost money and complained about it because of inaccurate negative cash balances or because of the outages that occurred on march 2nd and 3rd you might be eligible for money from robin hood or for getting some money from robin hood now regarding amc and gme the only thing i could really find in all of this was that finra found that between january 18 and february 2021 which would encompass the gme crisis on january 28th finra basically just slaps robin hood and alleges that it failed to supervise the technology it relied upon for core broker services there's nothing specifically related to restitution for gme now they do include that time frame in here which kind of implies that they also looked into the gme situation but aren't actually assessing any kind of restitution for that now i'm not sure if that totally closes the door to any restitution coming from the gme crisis where folks weren't able to buy option contracts or shares of gme i though would imagine that not being able to buy makes it very hard to prove a loss whereas when robin hood just shut down on march 2nd and 3rd you could kind of prove your decline in market value potentially potentially more easily so my guess is this probably closes the door on the gme crisis now what we can do as well is we can look at some of the actual allegations in their report here in here finra alleges that customers who had either robin hood gold or not were eligible to turn off margin investing but despite the fact that people could turn off margin investing it says here and again this is finra's allegation that robin hood has allowed approximately 18 i'm sorry 818 000 customers who had been approved for options trading either instant customers or gold customers with margin disabled to make trades such as option spreads that could automatically trigger the use of margin so all of a sudden people who thought margin was off were actually using margin this is again where finra talks about the unfortunate suicide of the 20 year old college student who was at home from college at the time of the incident we also have another allegation here and this is again mentioning here that robin hood displayed inaccurate cash balances to more than 135 000 customers the firm displayed these erroneous cash balances to robinhood instant and gold customers who either were randomly provided a test account feature by robinhood or who enrolled in the firm's cash management program they were left essentially with in some instances false information regarding the amount of cash they had available some other allegations here first robin hood misstated the risk of loss associated with certain options spreads and then provided false information about actions the firm would take on those spreads resulting in losses totaling 5.73 million dollars so potentially this this portion we talked about in uh with with money going out so you've got one set of money about five million dollars here going out between for outages suffered uh march second to third this other seven million dollars here regarding these negative cash balances uh probably also had to do with uh with this here option spreads so you probably had to have some kind of loss related to option spreads to qualify for a restitution here they also go as far as breaking down robin hood's poor explanation of option debit spreads like call debit spreads here calling it straight up false and misleading some of the information that robin hood had on their website robin hood also issued erroneous margin calls and margin call warnings to over a hundred thousand customers the two significant events occurred in the three-month period in a three-month period in 2018 and affected more than 100 000 customers uh leading to 1.65 million dollars in losses so you can kind of see it looks like you would have had to have been involved in at least for portion of this either march 2nd or march 3rd 2020 or you would have had to have lost money in 2018 or i'm sorry between october 16th and september 2019 where robin hood issued you an erroneous margin call or you lost money due those call debit spreads and inaccurate balances showing up so those are look like those are the folks who are going to be getting restitution could be others as well here uh some other statements and allegations here finra makes that robin hood use the label equity rather than market value in certain cases which is bad because your market value could be a million dollars but if half of that is debt then your equity is only 500k right but if it shows a million dollars is equity that overstates how much money you actually have which could lead you to take on riskier trades we've got a mention here that robinhood offered free stocks to folks but the firm did not disclose that there was a 98 chance that the free stock awarded would have a value of only two dollars and fifty cents to ten dollars despite advertising stocks like apple ford or sprint which ford at the time was worth more than the fifteen dollars when it sits now but anyway it's uh worth mentioning that you can still get two free stocks with weeble if you go to weeble go to metkevin.com weeble deposit 100 and they'll give you up to two free stocks totally for free and they also somewhere at the bottom of their website show you what your odds are of getting that i think i don't know i'm not an attorney i'm just pitching weeble because i use them daily but i also use robin hood daily so yeah anyway okay pitch over let's keep going so some other allegations or interesting notes that i saw under here is robin hood didn't pay attention to mission critical systems we've got a note over here that robin hood has to pay restitution of exactly 12 million 598 445 dollars and 16 cents uh the rest are fees and penalties you've got dan gallagher for robin hood signed this and uh they're being asked to wire transfer the full amount so that's going to be a big bill that's getting sent over and then i'm not sure if robin hood or finra is sending this money out but uh they're literally sending thousands of dollars to some people i mean here you've got fourteen hundred dollars going out three thousand three hundred dollars going out eight hundred dollars ninety dollars twenty three dollars okay ten thousand two hundred dollars so you've got a bunch of customer numbers here these aren't actual numbers these are just the number of affected customers and uh this goes on and on and on i mean we go out to over over i think 2 000 customers here this is a list of yeah 2832 customers and for schedule 2 we've got total restitution of 1.6 million dollars and for schedule uh one which i believe a schedule one has to do with the options i think that's where the big dollars are coming out there are less folks but restitution for schedule one yeah two million dollars right here so not exactly sure where the schedules are for uh the other uh like i don't know 9 million dollars but i can show you where this is in case you want to look this up yourself if you've been given like a reference number or contact number basically what you want to do is you just want to type in to google finra orders record financial penalties against a robin hood i'll show you exactly how to do this so you jump in to google type it in finra right here finra orders record financial penalties against robin hood click on this you're going to go over here to this is the statement we took a peek at this right here is the robin hood financial llc action and this right here is where you're going to be able to see all of the individual sums of money that folks are owed see six thousand eight hundred eighty dollars so on and so forth so a lot of folks are getting checks from robin hood for what happened here now uh what do i think about robinhood going forward well folks personally i think this is uh look robin hood's massive they they are one of the biggest players in the space their website analytics show a slight decline over the last couple months but quite frankly their website analytics appear to be way higher than they were before the january debacle i think this is uh you know a tiny kind of slap at robinhood i mean think about it 70 million dollars is probably about point one percent of their market cap because they're probably worth in the private market right around 70 billion dollars which means really if you had a thousand dollar net worth that'd be like giving a dollar out of a thousand dollars or that kind of be like giving a hundred dollars if your net worth was a hundred thousand dollars so it gives you a little bit of kind of scale in terms of how big this slap is and so i'd say overall this is a slap at robin hood obviously i expect that they fixed a lot of these issues already i think robinhood's going to keep growing i think this is just going to get written into the history books and everybody's going to move on hopefully this gets fixed and things like this never happen again the big thing is learning lessons and moving on so obviously i wish robin hood and the staff the best this is a pretty scathing report but remember it's also a one-sided report though some of those things yeah you know there's probably a good chunk of truth in a lot of what happened there with finra i don't know i can't speculate but look people are gonna be getting money back so at least some of the wrong is being righted and as long as robin hood is fixing these issues going forward it's good they're here to stay they're one of the biggest trading firms uh and overall this is a small little needle prick for robin hood it'll be okay in the long run for the company for the staff for people who invest in the company i don't think it's really going to make that big of a deal for their ipo if anything it's better that this chapter has been closed before the ipo because now that uncertainty of how big is the fine going to be in the future are they going to get fined is closed now i do think this kind of closes the door on maybe like any kind of restitution being paid for the gm ears who weren't able to buy calls or shares uh but uh you know we'll see we'll see if somebody was uh mistakenly liquidated maybe they'll be getting some restitution from this although it looked like we're mostly looking at dates between 2016 and 19 with false cash balances certain options and then march 2nd and 3rd of 2020 no specific mention to january 28th in this anyway there you have i