Robinhood Sued Over Trade Restrictions on Shorted Companies

Stock-trading app said it restricted trading on shorted companies like Gamestop "in light of current market volatility."

Recommended Stories

  • Boeing, hit with $6.6 million FAA fine, faces much bigger 787 repair bill - sources

    Boeing Co will pay a $6.6 million to U.S. regulators as part of a settlement over quality and safety-oversight lapses going back years, a setback that comes as Boeing wrestles with repairs to flawed 787 Dreamliner jets that could dwarf the cost of the federal penalty. Boeing is beginning painstaking repairs and forensic inspections to fix structural integrity flaws embedded deep inside at least 88 parked 787s built over the last year or so, a third industry source said. The inspections and retrofits could take weeks or even up to a month per plane and are likely to cost hundreds of millions - if not billions - of dollars, depending to a large degree on the number of planes and defects involved, the person said.

  • The company behind Louis Vuitton is now backing Birkenstock

    The German maker of what's affectionately deemed the original ugly sandal has a luxurious new owner.

  • Target (TGT) Queues Up for Q4 Earnings: What's in Store?

    Target's (TGT) fourth-quarter results are likely to reflect coronavirus-led demand spike. The company's focus on enhancing omni-channel capacities, remodeling stores and expanding same-day delivery options is commendable.

  • Government Borrowing Jumps by Most on Record in Covid Pandemic

    (Bloomberg) -- Government borrowing from markets in the world’s richest economies surged by a record 60% in 2020, with an increasing reliance on short-term funding that intensifies refinancing risks, the Organization for Economic Cooperation and Development said.The jump is almost double that recorded in the 2008 financial crisis, and borrowing is expected to increase further still in 2021, albeit at a slower pace, to reach $19.1 trillion.Record low interest rates following swift and massive interventions from central banks have reduced the cost of the additional debt. In 2020, more than 20% of government bonds in OECD countries were auctioned at negative yields.Still, the Paris-based organization warned that the share of short-term instruments in debt issuance has also jumped. Combined with an increase in funding needs, that weakens the resilience of governments and raises risks of refinancing difficulties, the OECD said in a report published Thursday.“Prudent debt management will be required as financing needs for debt repayments soar and the outlook for the global economy remains uncertain,” the OECD said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Pharma Stock Roundup: SNY/GSK & PFE COVID-19 Vaccine Update, MRK's Pandion Buyout

    Sanofi (SNY) & Glaxo (GSK) start phase II study on their COVID-19 vaccine candidate. Merck (MRK) offers to buy Pandion Therapeutics for $1.85 billion

  • 11 Projects Building a Strong Foundation Beneath the Marriage of DeFi and NFTs

    Meet the teams making the NFT market nearly as complex, flexible and liquid as the rest of crypto.

  • So, Are The New Stimulus Checks Coming Yet?

    According to a Twitter account called @WaitingOnBiden, today is the 38th day that President Biden has not sent $2,000 stimulus payments to Americans, something he promised he would usher out immediately after he assumed office. The last relief bill passed in December, while Trump was still president. The relief bill before that was passed in late March 2020, and now we’re just a few days away from March 2021. The good news is that the House is finally voting on the Biden administration’s $1.9 trillion COVID relief plan today, which includes a $1,400 stimulus payment to those who fall within the income limits. It will pass in the Democrat-controlled House, and it is likely to pass in the Senate through a process called budget reconciliation, which essentially allows lawmakers to pass fiscal bills more quickly because it only requires a simple majority to pass, instead of 60 votes. Beyond the stimulus payments, the relief bill also contains a $400 per week federal unemployment boost. The current set of federal unemployment provisions are set to expire by March 14, essentially giving Congress a hard deadline by which to pass the relief bill. While $1.9 trillion might sound like a lot, economists generally agree that the government should spend as much as it needs to help its citizens — that is its mandate, after all — without handwringing over what-ifs such as inflation or “overheating” the economy. The bad news, though, is that a key part of the relief bill — a $15 federal minimum wage hike — will likely not be included. Senate Parliamentarian Elizabeth MacDonough ruled yesterday that the inclusion of a minimum wage raise broke the rules of what can and can’t be included in a reconciliation bill. But what is a Parliamentarian, you ask? Turns out, it is not someone who only smokes Parliaments. The Parliamentarian is a non-partisan advisor who interprets rules and precedents within the Senate. It is an appointment and not an elected position. The Senate also doesn’t have to listen to the Parliamentarian’s rulings; the “presiding officer” of the Senate — in other words, the Vice President — can ignore the Parliamentarian. There’s precedent for that. According to Washington Post reporter Jeff Stein, however, Vice President Harris will not be overruling MacDonough. That means that the minimum wage provision will be removed from the bill in the Senate and return to the House for another vote. It also means that any attempt to raise the federal minimum wage — which has not been raised since 2009 and remains at $7.25 — will need to be introduced in a standalone bill that won’t be able to pass via budget reconciliation, needing to clear the bar of 60 votes. Top Democrats have already announced an alternate plan that would impose a 5% tax on big corporations if they don’t raise their wages and even tax credits for small businesses that do raise wages. But some economists are concerned that a tax disincentive, or tax credits, would not do enough to actually raise wages for a broad swath of workers. While many conservatives have bristled at the idea of a $15 federal minimum wage, American wages have generally remained at a standstill for decades. If the minimum wage had kept pace with workers’ productivity and inflation, it would be around $20 per hour right now. We also need to acknowledge the huge impact a minimum wage hike would have on the people who have been most harmed by the pandemic. The Economic Policy Institute (EPI) recently released an analysis of wages in the past year and found that average, inflation-adjusted wages in the U.S. had actually gone up in 2020. Great news, right? Wrong. The EPI found that average wages had increased because the makeup of the American workforce had changed so drastically — a huge proportion of those who lost their jobs during the pandemic were those making low wages, or around $14 per hour or less. In contrast, people making $25 per hour and above actually saw job gains overall in 2020. With so many low-wage jobs having disappeared, we get the illusion that there’s been progress instead of a downslide. A $15 minimum wage would be life-changing to so many Americans, and its exclusion from the next stimulus bill is an enormous disappointment. Like what you see? How about some more R29 goodness, right here?New Stimulus Checks Will Go Out To Fewer PeopleWhat To Know About Biden's COVID-19 Relief PlanBiden Is Making Sweeping Changes To Minimum Wage

  • After the upcoming third stimulus check, will you get a fourth?

    The U.S. House votes Friday on a bill to give you a third payment. Could there be another?

  • Trump Organization Under Criminal Investigation in NY – Will Donald Trump’s Accountants Flip?

    Last night on MSNBC, Bloomberg reporter Tim O'Brien speculated that the lead accountant on the Trump Organization's taxes may turn state's evidence. Allen Weisselberg is the chief financial officer of...

  • Robocallers have gotten out of control — here's how you can stop them

    Robocalls are exploding again, but there are some ways to stop these nuisances.

  • Americans can’t file their income taxes fast enough — but they should brace for some unwelcome news in their 2020 refunds

    The IRS has received approximately 21% more individual returns than the agency received last year by Feb. 7, which was 12 days into the tax season last year.

  • U.S. SEC suspends trading in 15 securities due to 'questionable' social media activity

    The U.S. securities regulator on Friday suspended trading in the securities of 15 companies because of "questionable trading and social media activity," the latest in a string of temporary trading halts amid volatile trading in so-called "meme stocks." The Securities and Exchange Commission acted because none of the companies have filed any information with the regulator for over a year, it said in a statement. This is the regulator's third and largest wave of suspensions in response to social media activity.

  • What's the timing of your next stimulus check, once the House approves it?

    Here's what still has to happen following the big vote in the U.S. House.

  • Nevada governor proposes giving tech firms power to govern

    Nevada's governor on Friday unveiled a proposal that would allow technology companies to establish jurisdictions with powers similar to those of county governments, arguing the state needed to be bold to diversify its economy and pushing back against those who have likened the idea to company towns. “This proposal is an exciting, unprecedented concept that has a potential to position Nevada as a global center of advanced technology and innovation, while helping to create immediate positive economic impact and shape the economy of the future,” Gov. Steve Sisolak said of his Innovation Zones idea. Under the proposal, companies developing cutting-edge technologies that have at least 50,000 acres (200 sq. kilometers) of land and promise to invest $1.25 billion could establish “Innovation Zones."

  • Now that mortgage rates are surging, are Americans making a big mistake?

    Borrowers are backing off, mortgage demand is falling — but what if rates go even higher?

  • ‘She is a financial idiot and partier’: I loaned my sister $4,780 for a lawyer during her divorce. I am still chasing repayments

    ‘She earns $90,000 to $95,000 a year, but this year’s excuse is that she is in arrears for child-support payments.’

  • SPAC and ESG Fads on Collision Course With Billions at Stake

    (Bloomberg) -- Two of the hottest equity market trends are headed for a clash as some ESG investors are having second thoughts about blank-check firms that have flooded the market.Early signs show that money managers wedded to environmental, social and governance themes are reluctant to buy into special-purpose acquisition companies before a target has been identified. That could potentially cut SPACs out of an investment class that’s on course to exceed $53 trillion by 2025, according to Bloomberg Intelligence.Sanford C. Bernstein analysts are among those questioning whether blank-check listings are a good fit for investors seeking to direct capital toward businesses and activities that support a greener and fairer society. Amundi SA, Europe’s largest asset manager, says it’s reluctant to hand over its clients’ money to third-party SPAC sponsors.“Does the prospect of buying into an acquisition vehicle before it has made its investment sit oddly, from a governance perspective, with the surge in ESG-driven investing?” analysts at Bernstein led by Inigo Fraser-Jenkins asked in a note on Wednesday.For some investors, the answer to that question is yes.“From an ESG perspective, it is quite difficult to invest in pre-deal SPACs,” said Ross Klein, founder and chief investment officer of Changebridge Capital, adding that without proper insight into the target acquisition, there is no way to assess the environmental or social impact of the business.“There is an interesting tug of war at play between the two trends,” he said. It’s once a deal has been announced that there’s opportunity to review initial financial disclosures and talk to management, customers and competitors, he said.SPACs are blank-check investments because there isn’t “good visibility on where the money will go in future; for this reason, they are just not an institutional way of investing money,” said Fabio di Giansante, head of large-cap European equities at Amundi.The SurgeThose concerns haven’t stopped a flurry of SPAC listings, especially in the U.S. Since the start of 2020, blank-check companies have raised about $140 billion, according to data compiled by Bloomberg. And only a handful of these have been in Europe.Typically, sponsors -- well-known executives, or even private equity or venture capital firms -- create a SPAC with no actual business other than to take the cash it raises to invest in another firm that has yet to be identified. If no target is found within its two-year lifespan, the blank-check firm is dissolved and investors get their cash back. In case of a takeover, shareholders can either hold on to their shares or redeem their holdings if they don’t like the deal.With those options available, not all market players see pouring funds into SPACs as going against ESG principles.Investors can question the people running the vehicle about the type of target, and can sell if they don’t like the acquisition the SPAC makes, said Gavin Launder, a fund manager at Legal & General Investment Management. “Lack of transparency about the end target doesn’t necessarily make these vehicles ESG-incompatible.”Going GreenAdditionally, some SPACs are riding the ESG theme, looking to directly cash in on the flood of money pouring into green investments. ESG Core Investments BV raised 250 million euros ($303 million) this month in the first IPO of a sustainability-focused blank-check company in Europe.SPACs that have listed so far have completed more deals in technology than any other sector, with energy and utilities lagging at the bottom end, although acquisitions in these industries are heavily exposed to renewables, according to Bernstein.Still, the rush of SPAC listings, surpassing highs seen in early 2000s, has some investors concerned about the quality of the offerings coming to market.Investors should study the track-record of the sponsoring team and evaluate the attractiveness of the targeted sector before putting money in a blank-check firm, said Daniel Pinto, chief executive officer of Stanhope Capital.“What’s worrying is the ease with which people, even those without a public track record or a demonstrated capacity to invest well, can raise money in SPACs,” he said, adding that the traditional IPO process puts more regulatory requirements on issuers.(Updates with a comment from Stanhope Capital’s Daniel Pinto in penultimate paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Column: McConnell says there's no need for more state and local aid. Don't believe him

    Senate Minority Leader Mitch McConnell is still throwing sand in the gears of good government. The result risks bankrupt states and localities.

  • Houses Are Selling the Fastest in These 10 Real Estate Markets

    Not all housing markets are equal — and some might be a struggle for buyers. If you're buying a home, be aware of cities where houses are being sold quickly.

  • Column: The GOP concocts a fake story about Becerra suing nuns over contraception coverage

    Did Xavier Becerra sue nuns to force them to pay for contraceptives? Nope.