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Robinhood’s Halted Foray Into Banking Prompts Lawmaker Scrutiny

Dec. 20, 2018, 10:15 PM

A bipartisan group of U.S. senators wants financial regulators to examine whether Robinhood Financial LLC misled its customers by offering what seemed to be checking and savings accounts but were really investment accounts.

Senate Banking Committee lawmakers sent a letter to the Securities and Exchange Commission and the Federal Deposit Insurance Corp. asking them to review Robinhood’s recent announcement that it was offering special accounts that would pay high interest and include features associated with traditional banking.

Robinhood’s effort -- technically a re-purposed brokerage account -- was quickly put on hold after the head of the Securities Investor Protection Corp. ...

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