Robinhood App Banks have been asked to draw on credit lines from the stock market chaos


Robinhood Website Home Screen

Photographer: Gabby Jones / Bloomberg

According to people familiar with the matter, the trading app Robinhood Markets, which is popular with investors behind this month’s wildly stock swings, has drawn some of its credit lines with banks.

People said the firm has tapped at least several hundred million dollars. The company’s lenders include JP Morgan Chase & Co. and Goldman Sachs Group Inc. Data compiled by Bloomberg. Robinhood and representatives of those banks declined to comment.

Behind-the-scenes to bolster Robinhood’s finances indicate that recent market havoc is putting a strain on the company, which has tied up with retail investors for its app during the epidemic. The firm is one of the brokerages whose shares have declined on trading GameStop Corp. And AMC Entertainment Holdings Inc. set the resentment among customers on Thursday. Robinhood also told users that it may close some of their posts as it takes steps to reduce account risks.

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