CLEARLY, Robinhood knows about the infinite leverage bug, they have the capital, resources and engineers to fix it in a day if they want.
Why are they not doing it? Are they stupid or what? Let's think about it for a second.
There are two possible outcomes here:
Let's say you do some leverage, and then use that leverage to lose 100k+, they can eat the loss briefly, and then they use collection agents to collect YOUR money. Robinhood will recoup the 100k$
You use the same leverage to gain 100k+, then, when you go to cash out to your bank, their audit team blocks the payment, saying that you "Violated the Terms of Service", by using a bug to make that amount of money. Thus, robinhood pockets 100k$. You can't sue them to get that money back, because you violated their TOS.
If I was Robinhood CEO, that's what I would do, a 100% legal, safe way to get rich quickly.
What you've described is a very quick way to lose your broker dealers license, and get in massive shit from multiple federal agencies, not a safe way to get rich.
> CLEARLY, Robinhood knows about the infinite leverage bug
This is the same company that offered FDIC insured savings and checking accounts, while not actually being covered by FDIC. They have always taken a move fast a break things approach, and then had to cover their asses when regulators step in.
> they use collection agents to collect YOUR money
These users do not have the assets anywhere to cover these debts. The best RH could do is negotiate a lower terms and hope they just don't file bankruptcy. That $100k is really worth closer to $0k when the person you lent the money to has no assets and no income.
> CLEARLY, Robinhood knows about the infinite leverage bug, they have the capital, resources and engineers to fix it in a day if they want.
Not in all cases. Not all leverage is visible to them (though hiding it can certainly constitute fraud on the part of their customers). It's not possible to look at ownership of a security and conclude without error that the owner hasn't leveraged it in some other way.
I think the bigger question is whether or not Robinhood's bug constitutes an actionable enforcement action by the SEC. There are rules about how this stuff is supposed to be accounted, and I'm absolutely certain they're in violation of a bunch of them. A fine is probably the median expectation, but I wouldn't be shocked to see them fold entirely. Hell I wouldn't be shocked to see someone there end up in jail when this is all done.
The Robinhood CEO Baiju Bhatt actually is stupid. Just a complete idiot who somehow managed to trick naive investors into giving him money. For proof see how badly he bungled the introduction of checking / savings accounts and lied to customers.
Outcome 3 is that the SEC revokes your broker-dealer license for violation of Regulation T and your entire company disappears into a puff of smoke. You become one more company “disappeared” by the law, like Accenture or Aereo.
It has the same chance (or maybe higher) to be around in the next 50 years, than the the one in the list you provided.
Also check AWS S3 out, it all depends on your use case (eg., do you need to access said files on a regular basis?(S3) or you just want to store them and never access them in the next years (Glacier) ?
As a Sicilian engineer working abroad, I always admired Salvatore. I exactly know and perfectly understand what is like to be successful in the comfort of Sicily, I hope someday to be as successful as him and able to come back to my beloved Sicily.
Italian here as well, graduated few months ago from a MsC., I feel your pain.
Was for a full year in USA for an internship, I can say that it has changed my life, and my view on work.
I refused hundreds of Job offers from Italy (even with a decent salary), to chase something abroad. Now I am happily working at one of the top tech companies, in Dublin.
I had a hard time at university. The italian university are broken, seriously, They focus on a lot of theory and zero to no practice.
My personal advice is, to believe in yourself, develop yourself, study new technologies and skills required by the market, find your perfect 'career' path. You won't find hard finding a really good job in Europe or USA if you have the right skills.
P.S. don't accept ANY of the Italian initial offers, look outside, practice with spoken English and send Resumè's abroad (Don't be scared about the big companies, they need you more than everybody else, and they are hiring like crazy.)
Don't start working in Italy in a typical "consultancy" job, or you will be stuck forever with a low-wage low-experience job.
Thanks :D. Yes the login feature is one of our main priority. At the beginning, we didn't want to force the login to save and use it. But Yes, the login would be a really nice improvement, even if we keep the current features without login. ;)
