- A new report from the US House Committee on Financial Services details 2021's meme-stock frenzy.
- Investigators describe confusion and surprise as Robinhood execs worked to deal with a capital call.
- Insider has the highlights of the 140-page Congressional report.
A recent Congressional report provided an in-depth look at Robinhood's internal communications amid the meme-stock trading frenzy in early 2021.
Surging volumes in specific stocks like GameStop and AMC Entertainment on the trading app Robinhood nearly overwhelmed the brokerage and some of its market makers, according to new details included in a report released Friday by the House Financial Services Committee.
Included in the 140-page report are internal messages between Robinhood employees in the before, during, and after the trading frenzy, which peaked in late January 2021.
"The Meme Stock Market Event," the report's authors wrote, "revealed how rapid growth and innovation in retail trading presents novel issues for market stability and orderliness that neither the industry nor regulators have satisfactorily anticipated or addressed."
Lucas Moskowitz, deputy general counsel and head of government affairs at Robinhood Markets, wrote via an emailed statement that the report "is nothing new," and confirmed January 2021 was "an extraordinary, once in a generation event."
"The report corroborates that the decisions and requests Robinhood made and waivers granted were generally the same decisions, requests and waivers made and granted by others in the industry," Moskowitz said.
"We remain confident that we took the appropriate and responsible steps necessary to protect and support our customers. Since then, we've made significant improvements to strengthen our foundation and have moved forward as a stronger company alongside our customers every step of the way," he added.
Insider combed through the 140-page report to highlight some of the most interesting messages between Robinhood employees during the market event.