The Echo Chamber
The pursuit of the nymphs of Mount Kithairon became a past time. Zeus, king of the Gods, loved their company. One nymph named Echo protected his departure from the mount by distracting his wife Hera in a long-winded conversation. Upon realizing the slight, Hera, Queen of the same Olympian gods cursed the nymph Echo. She would forever only repeat the last words of anyone in her vicinity.
The Echo Chamber
In an Echo Chamber, we only hear those things that reinforce our own opinion. Many of us enter this room, but the willful recover their awareness, hopefully, in time to avert disaster. Many more, unfortunately, build a livelihood from which there is no escape. It is, perhaps, a mental maze of the mindfully arrogant comfortable in their own magnificence. It is also a place, until recently, that Wall Street resided at least for a spell.
Even Wings can Burn
Many of us see Wall Street traders working as far above regulation as birds in our sky or spiritual beings taken flight in the financial world. More likely than not, it was just all an illusion.
The actions of r/WallStreetBets have shown that may even the wings of financial angels can burn. In this case, however, it may not be the retail investor that suffers for too long.
In a statement made by the SEC the morning of Friday, January 29, 2021, the words "closely monitoring" and "aggressive enforcement action" made headlines. The SEC promised these actions in light of traders' actions like RobinHood to "protect" the investors. The SEC is now investigating to determine if manipulative trading activities occurred that federal securities laws prohibit.
The SEC also holds that, in light of the market volatility, the core infrastructure remained resilient.
From Complaints to Fines
On December 17, 2020, the SEC fined Robinhood $65 million for deceiving its customers between the years 2015 and 2018. We're looking at about a 5 year period between the SEC's observation period of Robin Hood and its announcement of a fine against the trading platform. The time involved in the investigation does NOT include the number of complaints it took before the SEC started their investigation.
Surprisingly, Robin Hood has been involved in a slew of legal issues since the end of 2019, including a $1.25 million fine from the Financial Industry Regulatory Authority.
I wouldn't trade on a platform I haven't checked, and I'm a novice at this stuff. I felt I did my due diligence with @LeoFinance before putting my money on the token.
Like Sharks to Water
One law firm announcing their entry into the Robinhood foray includes Girard Bengali. They are supposedly a leading LA law firm, which, on January 28, 2021, announced that it commenced an investigation of Robinhood. They seek to determine if Robinhood's user-friendly interface for trading "complex financial products" violates laws protecting investors.
The Louder The Echo
The louder the echo, the hard it is to hear your surroundings. r/WallStreetBets may have won their battle, but the war against Wall Street is by no means over yet. The SEC commits to an investigation, but if history is any indicator, it will be years before its conclusion.
And Wall Street continues to marvel at their own magnificence within the chamber during the wait. It must be indeed comfortable inside.
Posted Using LeoFinance Beta