Tag: Peter Rudegeair

Robinhood, Citadel CEOs Grilled by Lawmakers in Wake of GameStop Saga

Mary Pat Campbell

Link: https://www.wsj.com/articles/robinhood-citadel-others-prepare-for-the-gamestop-spotlight-in-washington-11613655854?mod=djemwhatsnews

Excerpt:

Robinhood Markets Inc. Chief Executive Officer Vlad Tenev offered an apology for the company’s decision to temporarily curb trading in some stocks, including GameStop Corp. , on Jan. 28 amid extraordinary volatility.

“Despite the unprecedented market conditions in January, at the end of the day, what happened is unacceptable to us,” Mr. Tenev said after being questioned at a congressional hearing Thursday.

His apology came after House Financial Services Committee Chairwoman Maxine Waters (D., Calif.) interrupted the Robinhood CEO during his opening remarks. Her request was unusual as witnesses are allowed to make opening statements before taking questions from lawmakers.

Author(s): Paul Kiernan and Peter Rudegeair

Publication Date: 18 February 2021

Publication Site: Wall Street Journal

Robinhood’s Reckoning: Facing Life After GameStop

Mary Pat Campbell

Link: https://www.wsj.com/articles/robinhoods-reckoning-can-it-survive-the-gamestop-bubble-11612547759?mod=djemwhatsnews

Excerpt:

Many startup founders dream of the day their creation claims the top spot in Apple Inc.’s app store. For Vlad Tenev, Robinhood Markets Inc.’s chief executive, it was more like a nightmare.

Mr. Tenev and his co-founder, Baiju Bhatt, had set out eight years earlier to bring the stock market to a new class of investors. With engineers plucked from Facebook Inc. and other tech giants, they stripped down the trading experience and eliminated commissions, making buying a share of stock about as easy as posting a photo on Instagram.

It worked. During the pandemic, throngs of amateur investors—homebound, bored and flush with stimulus checks—opened Robinhood accounts to experience the market’s thrills. By the end of December, the firm had amassed about 20 million users, according to people close to it, and weeks later its app hit the top of download charts.

Author(s): Peter Rudegeair, Kirsten Grind and Maureen Farrell

Publication Date: 5 February 2021

Publication Site: Wall Street Journal