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FOX Business’s Kristina Partsinevelos explains what’s going on with the Robinhood brokerage app and how users have responded to the company’s trading restriction this week.
The struggling mobile brokerage platform Robinhood is looking to hire a lobbyist to advocate for its interests on Capitol Hill ahead of likely Congressional hearings over its involvement in the GameStop stock trading controversy.
Robinhood on Friday posted a list of a “director of federal affairs” on Daybook, a job site for public policy professionals. The list came online as the executives of the popular day-trading app face bipartisan criticism from lawmakers over their decision to restrict trading involving GameStop shares and other actions taken by lawmakers. retail investors.
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“This role will focus on federal advocacy and government affairs related to legislative and regulatory matters, and will report to our Deputy General Counsel for Litigation, Regulatory Enforcement and Investigations, and Government and Regulatory Affairs,” said the job description.
It is unclear whether the latest publication was directly linked to calls for Congress to hold hearings on Robinhood’s handling of the situation and the circumstances that led to unprecedented volatility for a number of stocks this week. An ad with the same title on the Indeed job board has been live for more than 30 days.
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Representatives for Robinhood did not immediately respond to a request for further comment on the job posting.
Democratic heads of the Senate Banking Committee and the House Financial Services Committee have each indicated they are moving forward with hearings on the GameStop trading frenzy. Meanwhile, the US Securities and Exchange Commission has pledged to “closely examine actions taken by regulated entities that may disadvantage investors or unduly hamper their ability to trade certain securities.”
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A handful of stocks favored by Reddit group “WallStreetBets” soared in value this week as users bought stocks. The surge prompted a “short squeeze” on hedge funds betting against stocks, which included GameStop, BlackBerry and AMC Entertainment, forcing them to buy more stocks to cover their losses.
Critics of Robinhood and other platforms that have passed trading restrictions have argued they did so at the behest of Wall Street hedge funds threatened with insolvency. The platforms denied the claims and said the restrictions were aimed at mitigating the risk.
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