Robinhood has responded to a long list of questions from Senator Elizabeth Warren, Democrat of Massachusetts, about its businesses practices, and what went wrong during the height of the so-called meme stock mania. The questions and responses indicate Ms. Warren’s likely focus as the Senate Banking Committee, of which she is a member, scrutinizes the fintech company and push for securities regulation. More immediately, the back-and-forth serves as a preview of likely themes at a hearing in the House on Thursday on the market frenzy that will include Vlad Tenev, Robinhood’s chief executive. The letter to Ms. Warren from Robinhood reiterated the company's previous comments about the capital constraints that forced it to halt trading in some stocks during the height frenzied trading in shares of GameStop, AMC and others. When pressed by Ms. Warren, Robinhood said it did not “share customer data beyond customer orders” with firms like Citadel Securities, although it did not say what was included in those customer orders.

Source: New York Times February 17, 2021 20:03 UTC