A blockaded mobile brokerage platform Robinhood Seeks to hire a lobbying group to defend its interests on Capitol Hill ahead of potential congressional hearings over its participation on GameStop Stock trading Controversy.
Robinhood List published Friday For Daybook’s “Director of Federal Affairs”, a job board for public policy professionals. The listing has begun as executives on the popular day trading app face bipartisan criticism from lawmakers over their decision to restrict transactions involving GameStop stocks and other stocks embraced by retail investors.
“This role will focus on federal advocacy and government affairs related to legislative and regulatory matters, and will report to the Deputy General Counsel for Litigation, Regulatory Implementation and Investigations, and Government and Regulatory Affairs,” Job title Says.
It is unclear if the latest publication was directly related to calls from Congress for hearings on Robinhood’s handling of the situation and the circumstances that led to the unprecedented volatility of a number of stocks this week. A post with the same job title has already been published on the job board for more than 30 days.
Robinhood’s representatives did not immediately respond to a request for further comments on the job posting.
Both the Democratic Presidents of the Senate Banking Committee and the House Financial Services Committee have indicated that they will go ahead with hearings about the GameStop trading frenzy. Meanwhile, the US Securities and Exchange Commission has pledged to “closely review measures taken by regulated entities that may harm investors or unduly prevent their ability to trade certain securities.”
A handful of stocks favored by Reddit Group “WallStreetBets” rose in value this week as users bought shares. The rally led to a “short squeeze” on hedge funds that were betting against stocks, which included GameStop, BlackBerry and AMC Entertainment, forcing them to buy more shares to cover their losses.
Critics of Robinhood and other platforms that enacted trading restrictions argue that they did so at the behest of Wall Street hedge funds at risk of bankruptcy. The platforms denied the allegations and said the restrictions were aimed at mitigating the risks.