Home Headline News The Robinhood Fix Continues

Robinhood prohibited its users this week from buying stocks in a number of companies, including GameStop, Nokia, and BlackBerry, after they had been invested in by a group of amateur traders, resulting in billions of dollars worth of losses for Wall Street hedge fund short-sellers.

Several members of Congress, including Sen. Ted Cruz (R-TX), Rep. Rashida Tlaib (D-MI 13th District), and Rep. Alexandria Ocasio-Cortez (D-NY 14th District), have publicly called for an official hearing over Robinhood’s actions.

Robinhood stepped in and made what they called “risk management decision” to block the purchasing of stocks being made unusually popular thanks to the r/WallStreetBets subreddit, its app on Google Play was inundated with reviews from unsatisfied customers. 

Robinhood CEO Vlad Tenev is facing a heavy backlash after he attempted to defend his trading app’s decision to stop users from buying certain stocks, claiming it had “no choice.”

Tenev was interrogated by CNN’s Chris Cuomo on Thursday amid the Robinhood-GameStop stocks controversy, with the CEO claiming his decision was made to adhere to vague “regulatory requirements” and not to protect wealthy hedge funds that were shorting the stocks.

Tenev concluded by denying that Robinhood took action on the orders of any other market entity, and again blamed the decision on unspecified requirements.

Viewers were not convinced by Tenev’s excuses, however, lambasting the CEO in CNN’s YouTube comments, with some accusing him of “lying” and “dodging every single question.”

The app’s near-perfect rating stumbled to just one star on Thursday after over 100,000 reviews came in. Google has now deleted enough of those reviews, however, that the app’s rating has jumped to over four stars (out of five). 

Google admitted to actively deleting the reviews, as they violate a policy the company has on reviews that are published specifically to manipulate a company’s overall rating. 

You may also like


Your Trusted Source for Capital Markets & Related News

© 2024 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.