February 02, 2021

CNN: Exclusive: Elizabeth Warren wants answers on Robinhood's ties to large hedge funds

Senator Elizabeth Warren is demanding answers from Robinhood co-CEO Vlad Tenev over potential conflicts of interest caused by the free trading app's relationship with large hedge funds and other financial players.

In a letter obtained by CNN Business, the Massachusetts Democrat called out Robinhood for "abruptly changing the rules" on individual investors last week by temporarily banning purchases of GameStop (GME), AMC (AMC) and other stocks backed by traders on Reddit.
"The public deserves a clear accounting of Robinhood's relationships with large financial firms and the extent to which those relationships may be undermining its obligations to its customers," Warren wrote in the letter to Tenev.
The letter from Warren underscores the enormous scrutiny facing Robinhood from all sides, including lawmakers, regulators and customers.
Read the full article here

By:  Matt Egan
Source: CNN