REUTERS/Brendan McDermid
Robinhood CEO Vlad Tenev said on CNBC Thursday the company doesn t have liquidity issues.
Tenev also defended the company s choice to pause trading of some stocks, which outraged customers.
Robinhood CEO Vlad Tenev shot down speculation on Thursday about the company s finances, telling CNBC s Aaron Ross Sorkin there was no liquidity problem.
The rumors arose after Bloomberg reported Robinhood had borrowed at least several hundred million dollars from banks amid the recent trading frenzy on its platform. In terms of the credit lines, Tenev told CNBC, that was really a proactive measure. We pulled those credit lines so that we could maximize, within reason, the funds we have to deposit at the clearing houses, he added, referring to regulations that require brokerage firms like Robinhood to have a minimum amount of money deposited with financial clearinghouse