Saturday, 18th May, 2024
Saturday, 18th May, 2024
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Robinhood is said to draw on bank credit lines amid tumult

Robinhood Markets, the trading app that’s popular with investors behind this month’s wildest stock swings, has drawn down some of its bank credit lines to ensure it has enough cash to clear trades, according to people with knowledge of the matter.

According to one of the people, the firm has tapped at least a few hundred million dollars, a significant amount of which was worth $12 billiona few months ago. According to Bloomberg, Robinhood’s donors include Jepimarogan Chase & Co and Goldman Sachs Group Inc. Included. Robinhood representatives and those banks declined to comment.

Behind the scenes, Robinhood’s financial stimulus adds strong signs that the recent market downturn is putting pressure on the company, which has signed up a lot of retail investors for the app during the epidemic. Gamestop Corporation and AMC Entertainment Holdings Inc. on Thursday.

The company, which has stopped trading its shares, is among the customers, after the shares gained more than 100% on Wednesday, sparking outrage among customers. Robinhood further informed users that it may close some of their locations as it takes steps to reduce account risk.

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