Tenev, whose brokerage has attracted young investors with a simple mobile phone app and offer of commission-free trades, was accused of not fully informing its inexperienced clientele of the risks they are taking. The firm, said Democratic Representative Carolyn Maloney of New York, needs to “ensure retail customers don’t get the rug pulled out from under them.”
The exchange elicited a mea culpa from Tenev, who admitted the brokerage fell short of meeting its customers’ needs. “I’m sorry for what happened,” he said. “I’m not going to say that Robinhood did everything perfect and that we haven’t made mistakes in the past. But what I commit to is making sure that we improve from this.”
and Washington last month. Individual investors had banded together on Reddit to drive GameStop and other stocks to astronomical levels, triggering volatility that caused some hedge fund short-sellers to lose billions, while Robinhood and other online brokerages were forced to temporarily prevent their clients from buying.
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