Robinhood is drawing on credit lines from its lenders, $4 reported Thursday.- The
trading app is tapping into "at least several hundred million dollars," according to Bloomberg. - Robinhood is popular among the
retail investors behind this week's market frenzy involvingGameStop .
Robinhood is drawing down lines of credit to the tune of "at least several hundred million dollars," $4 reported Thursday.
The quick decision to seek additional funds from its lenders, which include JPMorgan Chase and Goldman Sachs, suggest that this week's trading frenzy has put a strain on the company, according to Bloomberg's Matthew Monks and Michelle Davis.
But Robinhood $4 on Thursday about the company's finances, telling CNBC's Aaron Ross Sorkin "there was no liquidity problem."
"In terms of the credit lines... that was really a proactive measure," Tenev told CNBC.
"We pulled those credit lines so that we could maximize, within reason, the funds we have to deposit at the clearing houses," he added, referring to regulations that require brokerage firms like Robinhood to have a minimum amount of money deposited with financial clearinghouses at all times.
The trading app is popular among the online community r/WallStreetBets, a group of mostly retail investors who sparked massive market swings by targeting short sellers' positions in companies including $4, AMC Theaters, and $4.
Read more: $4
The high volatility prompted Robinhood and other brokerage firms to $4 of those shares.
In an email to users, Robinhood attributed the company's decision to restrict trading to having to comply with financial requirements including SEC net capital obligations and clearinghouse deposits, that it said protected investors and the stock market.
Read more: $4
But the move sparked outrage from $4, the broader retail investor community, several progressive lawmakers including Reps. $4 and $4, $4, and even $4, a $4 members.
Democrats in Congress have said they will $4 about Wall Street's practices following the GameStop short-squeeze.
Read more: $4
Robinhood has tapped its credit lines during periods of market volatility in the past. In March 2020, $4 in the early stages of the COVID-19 pandemic.