Skip to content

Meme-Stock Probe Finds Robinhood Woes Were Worse Than It Let On

  • House Democrats cite executives’ internal communications
  • Internal texts didn’t always match public comments: report
GameStop Pares Rally To Double Digits As Retail Traders Pile In
Photographer: Tiffany Hagler-Geard/Bloomberg

Robinhood Markets Inc. faced a more dire situation during the height of last year’s meme-stock frenzy than executives at the online brokerage let on publicly, according to a report from top Democrats on a key congressional committee. 

A more-than-yearlong investigation by staff on the House Financial Services Committee concluded Friday that the frenzied trading in GameStop Corp. and AMC Entertainment Holdings Inc. posed a significant threat to the online brokerage. Robinhood avoided defaulting on its regulatory collateral obligations in late January 2021 only because it received a waiver from its clearinghouse, according to the findings.