Robinhood CEO To Testify Just before Congress: Report
The CEO of the Robinhood economical application will testify ahead of a congressional committee afterwards this thirty day period, as the backlash in excess of its conclusion to restrict investing in remarkably-leveraged stocks, these types of as GameStop (GME) – Get Report, carries on, according to a published report Monday.
Robinhood CEO Vlad Tenev will testify just before the Home Economic Products and services Committee on Feb. 18, Politico documented, citing unnamed sources.
Robinhood abruptly limited buying and selling in GameStop on Thursday amid an clear quick squeeze on it and other really-leveraged shares coordinate by on the net chat rooms and frequented by Robinhood traders.
The transfer sparked a backlash from retail traders who mentioned they had been becoming punished for their achievements in routing Wall Road professionals who were being shorting the stocks. Politicians rapidly jumped into the fray as effectively, portraying Robinhood’s go as an try to defend Wall Road Goliaths from populist traders.
For its section, privately-held Robinhood claims it was pressured to restrict buying and selling and elevate cash to fulfill increased margin needs at the Depository Belief & Clearing Corporation (DTCC) clearing residence driven by the surge in speculative buying and selling through the web-site. “Robinhood has to operate within just the present regulatory environment,” the organization said in a blog publish late Monday.
The enterprise took in $3.4 billion from backers among Friday and Monday in a round led by Ribbit Cash with participation from present traders which include ICONIQ Cash, Andreessen Horowitz, Sequoia, Index Ventures, and NEA, the business explained. Robinhood is in negotiations with financial institutions to increase an additional $1 billion, Reuters documented late Monday, citing unnamed sources.
GameStop shares have ongoing to trade in a broad assortment, growing more than $100 Friday, only to drop back $100 in Monday’s normal session and much more in following-hours investing.
GameStop is a struggling brick-and-mortar online video sport retailer, hit challenging by the COVID-19 shutdowns and the very long-expression drop in retail mall traffic.
Silver futures, which have also been specific in retail trader chat rooms just lately, slid late Monday soon after previously surging to $29.42 an ounce at the midday settlement.