Sen. Elizabeth Warren asks Robinhood to explain why it restricted GameStop trades after hedge funds' losses

Sen. Elizabeth Warren on Tuesday asked Robinhood in a letter to explain why it restricted trading in red-hot shares of GameStop after hedge funds suffered huge losses in a short squeeze.

Warren, D-Mass., noted that the online brokerage last week abruptly changed trading rules for individual investors in certain stocks on its no-fee platform, while hedge funds and Wall Street institutional investors were allowed to keep trading in GameStop, Koss, AMC Entertainment, Express, Naked Brand Group and other companies.

„Robinhood has a responsibility to treat its investors honestly and fairly, and provide them with access to the market under a transparent and consistent set of rules,“ Warren wrote in her letter to Robinhood CEO Vladimir Tenev.

„It is deeply troubling that the company may not be doing so,“ wrote Warren, who is a member of the Senate Banking Committee.