Maxine Waters to investigate Robinhood CEO over GameStop controversy

'We are committed to seizing this moment as an opportunity to continue to improve ourselves.'

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Robinhood Chief Executive Vlad Tenev is expected to testify before a House committee following the GameStop stock controversy last week. 

Tenev will be interrogated by lawmakers during a hearing before the House Financial Services Committee on Feb. 18, Politico reports, citing unnamed insiders familiar with the matter. The hearing has not been formally announced, but chairwoman Maxine Waters (D-Calif.) has made clear that she is ready to get to the bottom of the firm’s decision to prevent its customers from buying stocks in GameStop and other companies. 

Read More: Google removed 100,000 negative Robinhood reviews from upset users

“I am concerned about whether or not Robinhood restricted the trading because there was collusion between Robinhood and some of the hedge funds that were involved with this,” Waters said on MSNBC this weekend.

The online trading platform restricted trading in GameStop and other stocks that have soared recently due to rabid buying by smaller investors, theGRIO previously reported. Among the restrictions announced by Robinhood on Thursday, investors would only be able to sell their positions and not open new ones in some cases, and Robinhood will try to slow the amount of trading using borrowed money. 

Besides GameStop, Robinhood said trading in stocks such as AMC Entertainment, Bed Bath & Beyond, Blackberry, Nokia, Express Inc., Koss Corp. and Naked Brand Group would be affected by the new restrictions.

Robinhood’s decision to limit trading prompted criticism from Rep. Alexandria Ocasio-Cortez (D-N.Y.), and Sen. Ted Cruz (R-Texas). Congresswoman Waters and other lawmakers now aim to uncover what role Wall Street hedge funds may have played in the ongoing GameStop saga, according to the report.

Read More: Robinhood restricts stock trading in GameStop, other cos.

“We are committed to seizing this moment as an opportunity to continue to improve ourselves, while we expand access to the entire financial industry for everyone.,” wrote Tenev in an essay published on USA Today.We will stand right beside everyday people in our mission to break down barriers to open the financial system. With a new generation of investors at the helm, the future looks a little brighter. I’m proud of what we have and will accomplish — together. 

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