Robinhood
- Robinhood, the popular commission-free trading app, maxed out its whole $200 million credit line this month as markets swung violently, Bloomberg reported Tuesday, mentioning sources knowledgeable about the matter.
- The relocate to draw the complete credit line came throughout 2 weeks of unstable market movement where Robinhood’s trading platform suffered 3 different outages.
- Robinhood informed Business Insider that the decision to draw on the credit limit was not associated with those failures.
- Read more on Company Expert
Robinhood, the popular commission-free stock-trading app, maxed out its entire $200 million credit limit last month amidst market chaos, Bloomberg reported Tuesday
The company drew its whole $200 million credit facility from Barclays, Citigroup, and JPMorgan Chase throughout the week of Feb. 24, discovered Bloomberg, which pointed out sources acquainted with the matter.
Robinhood’s move came throughout a volatile period for markets, and preceded a particularly choppy stretch over the last two weeks. Following its decision to max out the line of credit, the company experienced 3 different significant failures
The company strongly rejects its credit-facility actions were linked to those instances, and says it’s currently returned the $200 million to those banks.
” Any assertion that a make use of our credit limit was connected to an interruption is completely incorrect,” a Robinhood representative told Company Insider. The decision to obtain “predated and was totally unrelated to any failure on our platform,” they added.
Robinhood “determined it was sensible to make use of our credit line throughout the week of February 24 due to market volatility,” the spokesperson stated. ” It is not uncommon for business to take these preventive steps in the middle of current market conditions.”
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source https://jobsearchtips.net/robinhood-maxed-out-its-entire-200-million-line-of-credit-last-month-in-the-middle-of-market-chaos-report-says/
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