Robinhood draws down credit lines with banks over WallStreetBets drama

Well, well, well -- that was faster than I thought.

Robinhood Markets -- the trading app that is in the headlines right now, has reportedly drawn credit lines with banks to the tune of "at least several hundred million dollars" reports one of Bloomberg's sources. Robinhood lenders include companies like JPMorgan Chase & Co. and Goldman Sachs Group Inc.

Bloomberg adds that the "behind-the-scenes rush to bolster Robinhood's finances adds to signs that recent market havoc is putting a strain on the company". Robinhood explained in a blog post on its website today: "As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits".

Robinhood added: "Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the market and we take our responsibilities to comply with them seriously, including through the measures we have taken today".

I don't think this is the end for Robinhood just yet, with a full business day left things could get crazier. The weekend we should see it cool down, but come Monday things are going to be interesting. Robinhood has got a few days to try an un-wrangle itself, but how do you do it at this point?

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