What Weâve Learned From the Robinhood Affair
Letâs put parasitic speculators out of business. How about a lead role for Joe Bidenâs most progressive former top aide, Ted Kaufman?
Former senator and longtime Biden chief of staff Ted Kaufman speaking in 2009
The stock speculation scandal dominating the front pages vividly reveals what critics of extreme financialization have been saying for decades. All of this hyper-trading produces no benefits to the real economy. It creates and then pops financial bubbles, roils markets, harms actual businesses, enriches insiders at the expense of bona fide investors, and leads to extreme concentration of wealth.
Thursday, January 28, 2021
Key Points
Beginning February 1, new and amended rules will go into effect in New York that require certain individuals associated with investment advisers to register with the state and to meet examination requirements (or qualify for exemptions therefrom).
With respect to investment advisers registered with the Securities and Exchange Commission (SEC), these new registration and examination requirements will only apply to individuals who meet the federal definition of an investment adviser representative, while a broader range of persons associated with New York State-registered investment advisers will be subject to those requirements.
In addition, New York will now impose registration and examination requirements with respect to entities and individuals that qualify as solicitors, as defined in the state s revised rules.
Robinhood CEO Poorly Explains Why Company Restricted Trading on GameStop and Other Stocks
Trading Platform Robinhood Fined 65 Million By Securities And Exchange Commission | Justin Sullivan/Getty Images
Robinhood caused major controversy on Thursday when the company restricted trading on GameStop and a number of other stocks. The Internet freaked out over the move and even Republicans and Democrats agreed it was an outrageous decision that demanded an explanation. The company s CEO, Vlad Tenev, joined Aaron Ross Sorkin on CNBC Thursday night to explain why it happened. It didn t go well.
Tenev tried to give some sort of explanation, but it felt like a guy talking around the issue, rather than just plainly saying what drove the company to restrict trading. The segment is below:
San Antonio-area man accused of defrauding retired cops pleads guilty
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Victor Lee Farias, a Fair Oaks Ranch businessman, entered a guilty plea in a federal criminal case Wednesday. U.S. Magistrate Judge Richard B. Farrer accepted the plea via Zoom rather than in-person in the John H. Wood Jr. U.S. Courthouse.File photo
A Fair Oaks Ranch businessman faces up to 20 years in federal prison after he pleaded guilty Wednesday to orchestrating a Ponzi scheme that cost investors more than $7.4 million.
Victor Lee Farias, owner of Boerne-based Integrity Aviation & Leasing LLC, entered a guilty plea to one count of wire fraud during a hearing conducted by U.S. Magistrate Judge Richard B. Farrer via Zoom.