Robinhood raises $1bn in bid to restore GameStop trading – live updates

Robinhood raises $1bn in bid to restore GameStop trading – live updates

Robinhood, the trading app at the heart stock market frenzy, has raised more than $1 billion in preparation to restore trading in popular companies such as GameStop. 

The app is believed to have tapped existing investors and drawn down at least several hundred million dollars from banks such as JPMorgan and Goldman Sachs. 

It comes after Robinhood stopped trading on Thursday in several companies that had seen their stocks rise dramatically in the past week, provoking an outcry from customers and political leaders. 

Vlad Tenev, Robinhood co-founder, told CNBC that drawing the bank credit lines would “maximise . . . the funds we have to deposit at the clearing houses” that help manage US markets.

The company said it would “open up trading for some of these securities in a responsible manner”. The announcement saw GameStop share soar 60pc.