Robinhood, the online brokerage at the centre of wild trading in GameStop and other hot shares, scrambled to shore up its financial position and public reputation on Thursday after a day of chaos and anger among its clients.
The company has drawn down at least several hundred million dollars via a credit facility with banks led by JPMorgan and including Goldman Sachs, Morgan Stanley, Barclays and Wells Fargo, according to people familiar with the move.
It came after Robinhood and other retail brokers restricted trading earlier on Thursday in a number of companies whose share prices had risen sharply over the past week. After the cash injection, the company said it would allow trading in those securities to resume on a limited basis on Friday.