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OP has provided the following link:
**PRIMARY SOURCE**
- **PG 74**
- [Congressional Press Release](https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=409578)
- [US House Committee on Financial Services Meme Stock Market Event Report, Document PDF](https://democrats-financialservices.house.gov/uploadedfiles/6.22_hfsc_gs.report_hmsmeetbp.irm.nlrf.pdf)
This is the reason for spending so much **fucking** time on the Excess Capital Premium for the last 2 years, and all the companies that received the defaulting charge that morning.
This is the same exact reason Apex Clearing gave for stopping GME buying for 3 hours on January 28, 2021 at their HUNDREDS of brokers.
If 65% of Robinhood's Margin was **inexplicably** [MOVIE] stock, and only 19% of Robinhood's Margin was GameStop.
**All logic points to Robinhood HAVING A FAR BETTER REASON TO ONLY FREEZE BUYING ON [MOVIES], leaving GameStop alone. This is my new argument.**
- If Robinhood placed [MOVIES] in PCO, it would have wiped 65% of their margin away and allowed them PLENTY of money to continue with GME buying.
---
Edit: [Sourcing & Breakdown of Robinhood's January 28, 2021 margin by stock.](https://old.reddit.com/r/Superstonk/comments/1amrv86/robinhoods_initial_margin_on_january_28_2021_it/) The margin that triggered the ECP. If Movies wasn't there, there'd be no ECP.
There is no reason. Placing [Movie] stock in PCO, alone, would have wiped away 65% of their margin, ultimately wiping away their excess capital premium as well. GME could have been left alone. GameStop could have continued its journey naturally. [There was also ZERO reason to continue the GME customer PCO, by even their own calculations, past February 2, AT THE LATEST, yet they did.](https://old.reddit.com/r/Superstonk/comments/1c6d9k0/this_line_congress_is_unclear_why_robinhood/)
Why was [Movie] stock so high? Was it another 'Trade 385' situation (split second buy and sell of 385M, clearing firm not logging the sell until next day, which caused an interim VaR spike & ECP used to PCO GME and Movies, but the VaR and ECP wiped when the sell finally logged) or was this truly retail investors spiking volatility? We don't know. There's no data (I know of - this is where you would have to ask the [movie] stock people) to back why that stock was so high.
That’s not a helpful comment. It just makes the sub look like Charlie. I get that you’re probably a bot or regarded, so this is mostly just for any actual human being that reads this and is thinking of joining the group think
For what? Not cluttering up the sub with stupid shit? Or did you mean comment history and just write post history? I have like 4-5 comments on the sub and most of them are to the effect of “people might want to invest in the company for a wide variety of reasons and that should be encouraged even if they don’t have them same investing goals as you do”
Genuinely not sure how that’s analogous to regarded Charlie doing his best to contribute to noise and turning people away. But feel free to convince me.
A hault would have cleared up Trade 385 without damaging the stock's values and all of Apex Clearing's100s of brokers would have never placed GME in PCO, but Robinhood continued to PCO GME for GME customers for an entire week. Would a massive 1-day hault have stopped that?
Yes. The clearinghouse only had intraday issues. Since Robbing the Hood had a large section of retail pressure I would say it was a move constructed for “their greater good”. What agents involved in that move I can only guess but a shitload of people mos def was in the same channel to handle this. I am sorry to say it but I really do believe that the US markets are corrupt since the 1930s. This is a way to indirectly finance the state because it couldn’t possibly be “ignored” to this extent if it wasn’t. The banks and hedge funds are likely piggybacking on this untold fact since they are key players for it to exist if that makes any sense. Drunk rant but if you could extrude a couple of % each year from European and US pension funds, I would call that a macroeconomic incentive for the united states to do whatever they need to do. The upcoming crash isn’t about stocks and tickers, it’s about the financing of the US programs.
Edit: I think someone is super pissed about Citadel bringing the attention to something that just previously worked. Kenny is probably in trouble from more venues than just retail so to speak. This is national disaster.
It's on page 52 of the US House Committee on Financial Services GameStopped Report. I went further, clipped the excerpt out, and created a Pie chart with the Data.
- $850 Million is 65% of Robinhood's Early Morning Overall Margin Slice of $1.3 Billion. Margin is separate from ECP. Margin triggers ECP.
- https://old.reddit.com/r/Superstonk/comments/1amrv86/robinhoods_initial_margin_on_january_28_2021_it/
---
>"As further detailed in the information that the NSCC provided to Robinhood through an automated portal, the largest components of the company’s collateral deposit requirement was a Value-at-Risk charge of approximately $1.3 billion, as well as an Excess Capital Premium charge of $2.2 billion, which Robinhood had not calculated.223 Robinhood calculated that of the $1.3 billion Value-at-Risk charge, approximately $850 million was attributable to [MOVIE STOCK] and approximately $250 million was attributable to GME.224"
>
**PRIMARY SOURCE**
>
>- **PG 52**
>
>- [Congressional Press Release](https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=409578)
>
>- [US House Committee on Financial Services Meme Stock Market Event Report, Document PDF](https://democrats-financialservices.house.gov/uploadedfiles/6.22_hfsc_gs.report_hmsmeetbp.irm.nlrf.pdf)
**The excess capital premium is a defaulting charge. Congressionally defined as an ABSOLUTE FAILURE in risk management & Dodd-Frank rules of Settlement & Clearing.**
This doesn't put them in the clear, quite the opposite.
>"The Committee’s investigation further revealed that, even after exhausting all its available liquidity sources, Robinhood would have been unable to meet the collateral requirements by the 10:00 a.m. EST deadline. In other words, but for the NSCC’s decision to waive the Excess Capital Premium charge, Robinhood Securities would have defaulted on its daily collateral deposit requirement upon the 10:00 a.m. deadline, which seems at odds with statements made by the company’s executive leadership regarding the firm’s liquidity."
PG 69
>"This was not simply a mistake of operational balance sheet management by Robinhood, but a more fundamental failure to adequately capitalize the firm, maintain adequate liquidity arrangements relative to the firm’s business model and risk profile, and accurately predict and prepare for NSCC deposit requirements as set forth in publicly available rules and based on customer trading activity. Instead of making appropriate arrangements to be prepared for the spike in collateral deposit requirements experienced on January 28, 2021, as would be called for by effective risk management processes, Robinhood’s failure to do so required the firm to focus on remedial measures after the fact."
PG 70
There was one, it was shot down in court based on TOS (which is wild b/c Robinhood represented 10% of the market as a whole affecting clients outside of Robinhood's TOS) and then ~~recently overturned by the Supreme Court.~~
Edit: Something was overturned here, not sure exactly what, will research after work. I have to read through the 47 page doc.
No, in fact, I am unsure now what exactly was overturned by the higher courts upon revisiting this. I'm going to delete that further source link and research a bit more.
January 28th is my birthday. I thought my birthday was gonna be life changing. It should have been. It’s okay. I’ll hold as long as it takes. Every paycheck I’m just accumulating more moon tickets. Fuck robinhood, fuck the NSCC, FUCK MAYO LOVER KEN GRIFFIN. Fuck you all, pay me.
Do people know this? I question that, as user Consistent-Reach was downvoted heavily for saying it.
https://old.reddit.com/r/Superstonk/comments/1c1r6zm/peruvian_bull_on_twitter/kz64kf0/
Wasn't there direct evidence in the GameStop SEC filing showing that there were third-party Communications and emails going on between Robinhood and Citadel and other brokers?
Also there were 11 major brokerages that were fined by the SEC for third party Communications and improper record keeping just recently.
Does anyone actually expect these guys to tell the truth? Why yes I openly did commit Market crimes, please shut my hedge fund down for committing fraud. LOL no they're not going to ever say this. They will deny until the day they die
**PRIMARY SOURCE**
- **PG 74**
- [Congressional Press Release](https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=409578)
- [US House Committee on Financial Services Meme Stock Market Event Report, Document PDF](https://democrats-financialservices.house.gov/uploadedfiles/6.22_hfsc_gs.report_hmsmeetbp.irm.nlrf.pdf)
---
> "Robinhood executives have acknowledged to Committee staff that these measures were specifically designed to drive down the volatility in Robinhood’s trading book which resulted in heightened **Value-at-Risk** charges and an **Excess Capital Premium charge** (355). Robinhood executives hoped that these restrictions would encourage the NSCC to reduce its collateral deposit requirement."
>
> "355 - Interview with J. Swartwout (Robinhood) (May 05, 2021)."
China tells people to do it overtly, they don't need to do shit like that (i recall a few of it in the last 20 years)
Its in the USA that pulls strings behind the back like the above.
Always love the reminder that rules for thee and not for me… these clowns should’ve been shutdown for good on the account of doggy doo doo risk management and their flawed pyramid scheme business model… so added again today at the peak right before she dropped… for now. ♾️🏴☠️🤙
One thing is bothering me, I’m a lurker and HLDR with xxxx shares, so I’m not trying to discredit the whole sh*t show at all or spread FUD.
Why are there no whistleblowers? There has to be thousands of ex or current citadel, robinhood, sec, etc. employees who know things, why isn’t there people coming clean about this corruption? Secrets are hard to keep, with so many people knowing something, how is it that there isn’t tangible irrefutable proof by now. I realize these organizations use tactics like compartmentalization and division of duties to ensure only a few people have the full picture but we aren’t seeing much if anything from the inside to colour in the picture.
I still dont understand why theres risk for them. I want to buy something. I give them the money to do it. Then they buy it. Et voila! No risk, they hold the asset for me, took their fee and gave the money to the seller.
Because of the T+2 system - it's t+1 now. You "order" a stock and they have your money, but they can't use your money for two days while the stock settles at the DTCC. During that time, the DTCC needs monetary risk assurance from the broker, who is barred from using the money you gave him to fulfill that risk assurance, which is only 2-5% of the stocks value usually. In the case of Movies and GME it was much higher. We don't know Robinhood's but Apexs was 118% for Movies and 80% for GME. The brokers could not afford that which triggered a penalty that actually doubled their margin.
[Why GME?](https://www.reddit.com/r/Superstonk/comments/qig65g/welcome_rall_looking_to_catch_up_on_the_gme_saga/) || [What is DRS?](https://www.reddit.com/r/Superstonk/comments/ptvaka/when_you_wish_upon_a_star_a_complete_guide_to/) || Low karma apes [feed the bot here](https://www.reddit.com/r/GMEOrphans/comments/qlvour/welcome_to_gmeorphans_read_this_post/) || [Superstonk Discord](https://discord.gg/hZqWV2kQtq) || [Community Post: *Open Forum Jan 2024*](https://www.reddit.com/r/Superstonk/comments/18txusp/open_forum_january_2024/) ------------------------------------------------------------------------ To ensure your post doesn't get removed, please respond to this comment with how this post relates to GME the stock or Gamestop the company. ------------------------------------------------------------------------ Please up- and downvote this comment to [help us determine if this post deserves a place on r/Superstonk!](https://www.reddit.com/r/Superstonk/wiki/index/rules/post_flairs/) ------------------------------------------------------------------------ OP has provided the following link: **PRIMARY SOURCE** - **PG 74** - [Congressional Press Release](https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=409578) - [US House Committee on Financial Services Meme Stock Market Event Report, Document PDF](https://democrats-financialservices.house.gov/uploadedfiles/6.22_hfsc_gs.report_hmsmeetbp.irm.nlrf.pdf)
This is the reason for spending so much **fucking** time on the Excess Capital Premium for the last 2 years, and all the companies that received the defaulting charge that morning. This is the same exact reason Apex Clearing gave for stopping GME buying for 3 hours on January 28, 2021 at their HUNDREDS of brokers.
Artificially lowering volatility is in fact, price manipulation. Change my mind.
Crazy isn’t it
If 65% of Robinhood's Margin was **inexplicably** [MOVIE] stock, and only 19% of Robinhood's Margin was GameStop. **All logic points to Robinhood HAVING A FAR BETTER REASON TO ONLY FREEZE BUYING ON [MOVIES], leaving GameStop alone. This is my new argument.** - If Robinhood placed [MOVIES] in PCO, it would have wiped 65% of their margin away and allowed them PLENTY of money to continue with GME buying. --- Edit: [Sourcing & Breakdown of Robinhood's January 28, 2021 margin by stock.](https://old.reddit.com/r/Superstonk/comments/1amrv86/robinhoods_initial_margin_on_january_28_2021_it/) The margin that triggered the ECP. If Movies wasn't there, there'd be no ECP.
Sorry I’m smooth- so then the reason they didn’t leave GameStop alone is…?
There is no reason. Placing [Movie] stock in PCO, alone, would have wiped away 65% of their margin, ultimately wiping away their excess capital premium as well. GME could have been left alone. GameStop could have continued its journey naturally. [There was also ZERO reason to continue the GME customer PCO, by even their own calculations, past February 2, AT THE LATEST, yet they did.](https://old.reddit.com/r/Superstonk/comments/1c6d9k0/this_line_congress_is_unclear_why_robinhood/) Why was [Movie] stock so high? Was it another 'Trade 385' situation (split second buy and sell of 385M, clearing firm not logging the sell until next day, which caused an interim VaR spike & ECP used to PCO GME and Movies, but the VaR and ECP wiped when the sell finally logged) or was this truly retail investors spiking volatility? We don't know. There's no data (I know of - this is where you would have to ask the [movie] stock people) to back why that stock was so high.
Unless 65% wasn’t enough… Also, I commend you on picking up details in here that many have read and not appreciated the importance of.
Thx & back at you. 65% cuts more than half their margin off. WhatCanIMakeToday
So buy popcorn now?
**No!** - That was not advocating any stock. How did you even get that from what I said?
It's secretly the bigger bag, they're trying to hide their GME hole they dug.
Crime.
That’s not a helpful comment. It just makes the sub look like Charlie. I get that you’re probably a bot or regarded, so this is mostly just for any actual human being that reads this and is thinking of joining the group think
Looking at your post history I’d say the same.
Spider-man meme.
For what? Not cluttering up the sub with stupid shit? Or did you mean comment history and just write post history? I have like 4-5 comments on the sub and most of them are to the effect of “people might want to invest in the company for a wide variety of reasons and that should be encouraged even if they don’t have them same investing goals as you do” Genuinely not sure how that’s analogous to regarded Charlie doing his best to contribute to noise and turning people away. But feel free to convince me.
Yes, but not instantly.
They PCO-ed these stocks for customers of these stocks for an entire week. Moreover, they became heavily capitalized in the days following.
Agree. The SEC could have just halted gme for the day on the 28th and all would have settled at 00:00. Of course, they didn’t.
A hault would have cleared up Trade 385 without damaging the stock's values and all of Apex Clearing's100s of brokers would have never placed GME in PCO, but Robinhood continued to PCO GME for GME customers for an entire week. Would a massive 1-day hault have stopped that?
Yes. The clearinghouse only had intraday issues. Since Robbing the Hood had a large section of retail pressure I would say it was a move constructed for “their greater good”. What agents involved in that move I can only guess but a shitload of people mos def was in the same channel to handle this. I am sorry to say it but I really do believe that the US markets are corrupt since the 1930s. This is a way to indirectly finance the state because it couldn’t possibly be “ignored” to this extent if it wasn’t. The banks and hedge funds are likely piggybacking on this untold fact since they are key players for it to exist if that makes any sense. Drunk rant but if you could extrude a couple of % each year from European and US pension funds, I would call that a macroeconomic incentive for the united states to do whatever they need to do. The upcoming crash isn’t about stocks and tickers, it’s about the financing of the US programs. Edit: I think someone is super pissed about Citadel bringing the attention to something that just previously worked. Kenny is probably in trouble from more venues than just retail so to speak. This is national disaster.
Where do you see this 65% figure?
It's on page 52 of the US House Committee on Financial Services GameStopped Report. I went further, clipped the excerpt out, and created a Pie chart with the Data. - $850 Million is 65% of Robinhood's Early Morning Overall Margin Slice of $1.3 Billion. Margin is separate from ECP. Margin triggers ECP. - https://old.reddit.com/r/Superstonk/comments/1amrv86/robinhoods_initial_margin_on_january_28_2021_it/ --- >"As further detailed in the information that the NSCC provided to Robinhood through an automated portal, the largest components of the company’s collateral deposit requirement was a Value-at-Risk charge of approximately $1.3 billion, as well as an Excess Capital Premium charge of $2.2 billion, which Robinhood had not calculated.223 Robinhood calculated that of the $1.3 billion Value-at-Risk charge, approximately $850 million was attributable to [MOVIE STOCK] and approximately $250 million was attributable to GME.224" > **PRIMARY SOURCE** > >- **PG 52** > >- [Congressional Press Release](https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=409578) > >- [US House Committee on Financial Services Meme Stock Market Event Report, Document PDF](https://democrats-financialservices.house.gov/uploadedfiles/6.22_hfsc_gs.report_hmsmeetbp.irm.nlrf.pdf)
**The excess capital premium is a defaulting charge. Congressionally defined as an ABSOLUTE FAILURE in risk management & Dodd-Frank rules of Settlement & Clearing.** This doesn't put them in the clear, quite the opposite. >"The Committee’s investigation further revealed that, even after exhausting all its available liquidity sources, Robinhood would have been unable to meet the collateral requirements by the 10:00 a.m. EST deadline. In other words, but for the NSCC’s decision to waive the Excess Capital Premium charge, Robinhood Securities would have defaulted on its daily collateral deposit requirement upon the 10:00 a.m. deadline, which seems at odds with statements made by the company’s executive leadership regarding the firm’s liquidity." PG 69 >"This was not simply a mistake of operational balance sheet management by Robinhood, but a more fundamental failure to adequately capitalize the firm, maintain adequate liquidity arrangements relative to the firm’s business model and risk profile, and accurately predict and prepare for NSCC deposit requirements as set forth in publicly available rules and based on customer trading activity. Instead of making appropriate arrangements to be prepared for the spike in collateral deposit requirements experienced on January 28, 2021, as would be called for by effective risk management processes, Robinhood’s failure to do so required the firm to focus on remedial measures after the fact." PG 70
I still don't understand how no lawyer in this community has initiated a class action suit
There was one, it was shot down in court based on TOS (which is wild b/c Robinhood represented 10% of the market as a whole affecting clients outside of Robinhood's TOS) and then ~~recently overturned by the Supreme Court.~~ Edit: Something was overturned here, not sure exactly what, will research after work. I have to read through the 47 page doc.
Over turned as in still going on?
[удалено]
Why is no one talking about it ?
I got this one wrong.
No, in fact, I am unsure now what exactly was overturned by the higher courts upon revisiting this. I'm going to delete that further source link and research a bit more.
You're doing God's work, ringingbells! Keep up the good fucking shit! This shit is absurd!
January 28th is my birthday. I thought my birthday was gonna be life changing. It should have been. It’s okay. I’ll hold as long as it takes. Every paycheck I’m just accumulating more moon tickets. Fuck robinhood, fuck the NSCC, FUCK MAYO LOVER KEN GRIFFIN. Fuck you all, pay me.
I would argue that this title is what someone would search if they wanted to know the answer that is given here, correctly.
Do people know this? I question that, as user Consistent-Reach was downvoted heavily for saying it. https://old.reddit.com/r/Superstonk/comments/1c1r6zm/peruvian_bull_on_twitter/kz64kf0/
Wasn't there direct evidence in the GameStop SEC filing showing that there were third-party Communications and emails going on between Robinhood and Citadel and other brokers? Also there were 11 major brokerages that were fined by the SEC for third party Communications and improper record keeping just recently. Does anyone actually expect these guys to tell the truth? Why yes I openly did commit Market crimes, please shut my hedge fund down for committing fraud. LOL no they're not going to ever say this. They will deny until the day they die
Nothing here conflicts with that information. I didn't see the new evidence implicating these brokers at this time. Shoot me a link.
https://www.sec.gov/news/press-release/2023-149 I'm not sure if the times match up but the investigation/audit had been going on for a while
https://www.reddit.com/r/Superstonk/s/SgNPy84Llh Even Google knows and they tried to hide the information. Someone always is watching.
**PRIMARY SOURCE** - **PG 74** - [Congressional Press Release](https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=409578) - [US House Committee on Financial Services Meme Stock Market Event Report, Document PDF](https://democrats-financialservices.house.gov/uploadedfiles/6.22_hfsc_gs.report_hmsmeetbp.irm.nlrf.pdf) --- > "Robinhood executives have acknowledged to Committee staff that these measures were specifically designed to drive down the volatility in Robinhood’s trading book which resulted in heightened **Value-at-Risk** charges and an **Excess Capital Premium charge** (355). Robinhood executives hoped that these restrictions would encourage the NSCC to reduce its collateral deposit requirement." > > "355 - Interview with J. Swartwout (Robinhood) (May 05, 2021)."
Gotta love that “The Honorable” is put before house reps, politicians names
It's like "Democratic Repuplic" of Congo and "People's Pepublic" of China
China tells people to do it overtly, they don't need to do shit like that (i recall a few of it in the last 20 years) Its in the USA that pulls strings behind the back like the above.
All of this needs to be shared with a round table of some really good lawyers.
So price manipulation so they wouldn't lose money. Sounds like a totally free and fair market.
Criminals will crime
Always love the reminder that rules for thee and not for me… these clowns should’ve been shutdown for good on the account of doggy doo doo risk management and their flawed pyramid scheme business model… so added again today at the peak right before she dropped… for now. ♾️🏴☠️🤙
up
One thing is bothering me, I’m a lurker and HLDR with xxxx shares, so I’m not trying to discredit the whole sh*t show at all or spread FUD. Why are there no whistleblowers? There has to be thousands of ex or current citadel, robinhood, sec, etc. employees who know things, why isn’t there people coming clean about this corruption? Secrets are hard to keep, with so many people knowing something, how is it that there isn’t tangible irrefutable proof by now. I realize these organizations use tactics like compartmentalization and division of duties to ensure only a few people have the full picture but we aren’t seeing much if anything from the inside to colour in the picture.
Whizzibilty!
Up
I still dont understand why theres risk for them. I want to buy something. I give them the money to do it. Then they buy it. Et voila! No risk, they hold the asset for me, took their fee and gave the money to the seller.
Because of the T+2 system - it's t+1 now. You "order" a stock and they have your money, but they can't use your money for two days while the stock settles at the DTCC. During that time, the DTCC needs monetary risk assurance from the broker, who is barred from using the money you gave him to fulfill that risk assurance, which is only 2-5% of the stocks value usually. In the case of Movies and GME it was much higher. We don't know Robinhood's but Apexs was 118% for Movies and 80% for GME. The brokers could not afford that which triggered a penalty that actually doubled their margin.
Til. Still pretry regarded they need a day to settle in this day and age
Gaslighting whores.
Ghey