Embattled mobile brokerage platform Robinhood is seeking to hire a lobbyist to defend its interests on Capitol Hill ahead of likely congressional hearings on its involvement in the GameStop stock trading controversy.
Texas Attorney General Ken Paxton announced a corruption investigation into the Robinhood and Discord apps Friday as well as unnamed hedge funds as the online trading app Robinhood eased restrictions on various stocks -- a day after hitting pause due to heavy volume. Some of those stocks include GameStop, AMC Entertainment, Bed Bath & Beyond, and BlackBerry.
The share prices spiked this week and sold off as retail investors, spurred by the online Reddit forum WallStreetBets, piled into the stocks. The volatility continued as platforms like Robinhood and Interactive Brokers limited trading on certain stocks Thursday.
|AMC||AMC ENTERTAINMENT HOLDINGS INC||9.18||+1.17||+14.61%|
Robinhood defended its decision by saying "we continuously monitor the markets and make changes where necessary." The Securities and Exchange Commission said Tuesday it is monitoring the volatility. Members of Congress are also promising hearings.
Follow for the latest updates on the GameStop and AMC Entertainment trading frenzy. Mobile users click here.