Quartz – In a story about the Congressional report on the meme stock issues, Healthy Markets Executive Director Tyler Gellasch is quoted saying “That Robinhood was able to get out of this debacle was nothing short of a miracle. It is the equivalent of a four-engine plane losing all four engines at 30,000 feet and landing safely. Gellasch is critical of the risk management shortcomings that contributed to Robinhood’s troubles. He chalks up the firm’s survival to its political savvy. “This shows the power of having an extraordinarily politically connected executive on your team,” he said. Robinhood’s failure could have had serious consequences for the broader financial system, too. “There isn’t really a precedent for a firm like Robinhood to fail,” Gellasch says. “The sudden collapse of a broker-dealer with millions of accounts could very easily have been the spark that ignited a broader market disruption.” (Full Story).
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