Robinhood CEO Says Trading Limits Will Protect Firm, Customers
(Bloomberg) -- Robinhood Markets Chief Executive Officer Vlad Tenev said the firm drew down its credit line and restricted client buying of certain stocks to protect its financial position.
“Look, it is not negotiable for us to comply with our financial requirements and our clearinghouse deposits,” Tenev said Thursday on Bloomberg Television. “We have to do that.”
Robinhood drew down by several hundred million dollars some of its credit lines with banks, Bloomberg reported earlier, citing people with knowledge of the matter. The firm’s trading app is popular with investors who were behind this month’s wild stock swings in shares of companies including GameStop Corp. and AMC Entertainment Holdings Inc. Robinhood was also among those that responded by clamping down on client purchases of certain stocks on Thursday.
The trading restrictions drew a rebuke from Democratic Representative Alexandria Ocasio-Cortez, who suggested closer scrutiny from U.S. regulators and Congress. A prominent Senate Republican, Ted Cruz, agreed. Tenev acknowledged the bipartisan accord.
“We are glad both sides of the aisle are coming together here, obviously under difficult circumstances,” he said.
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