USA: Congress looks at gamestop history

D.On Thursday, February 18, 2021, U.S. delegates will hear testimonies from key players in the flu that targeted several companies listed on Wall Street, including the GameStop video game stores. A delegation of financial services has been organizing a virtual investigation since Washington time (GMT until 5pm) to shed light on the insane winds that blew through New York City last month.

The army of amateur investors, especially those exchanged in a forum on the Reddit site, had invested heavily in disrupting the financial health of many companies, especially at GameStop, but also at AMC cinemas or the chain of shops in Bed, Bath & beyond. Shares of these groups rose sharply in the coming weeks before giving up their high profits.

Internal trade?

By focusing on these companies, the stock founders wanted to misrepresent the large hedge funds and the Wall Street grandchildren who had bet on the stock market decline of these companies. Serious volatility in the market led US regulators and policymakers to ask for clarification. Regulators want to determine if there was price manipulation or internal trade.

Keith Gill, who is famous on Reddit and YouTube for his gamestop analysis, will be one of the speakers. Known on the Internet under the nicknames “Roaring Kitty” and “Deepfucking Value”, he was anticipating an upsurge on GameStop long before the January hike. In his testimony released Wednesday, Keith Gill is expected to reaffirm his position, “He believes GameStop has the potential to renew itself as the ultimate destination for gamers in the $ 200 billion video game industry. “

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Reddit co-founder Steve Huffman and Robinhood brokerage utility boss Vlad Denev will also be asked. Many Robinhood customers have complained about the site’s limitations on trading securities, especially in securities. Vlad Denev denies that he wants to protect investment funds by acting in this way, and confirms that his company’s goal is to give small companies access to the market.

The only snack: Robinhood’s business model includes Citadel, an investment fund, and a deal with Melvin Capital, owner of another hedge fund, which lost a lot of money during Gamestop’s market rise. After the value of the hedge fund’s portfolio fell by more than 53% in January alone, Citadel had to bail out Melvin for $ 2.75 billion, according to US newspapers. In light of this significant financial support for Melvin’s Capital, elected officials want to make sure that Citadel does not put pressure on Robinhood to forcefully suspend buying orders sent by stock market sellers at the Reddit Wall Street Bets Forum.

Citadel founder powerful financier Ken Griffin and Melvin Capital’s boss Gabriel Plotkin, who bet on GameStop, will also speak at the hearing. Gabriel will protect Plotkin’s particularly short sale, which he hopes will be able to borrow a security and buy back much cheaper later on to make a profit, according to the text of his opening speeches released on Wednesday. This practice is denied by many politicians, who consider it optimal for market manipulation and want to ban it for the fraud of speculators. Gabriel Plotkin is expected to express his regret that many of the posts on Reddit are “spread by anti-Semitic slanders against me and others.”

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Harrison Matthews

 "Evil musicaholic. Web fanatic. Communicator. Twitter practitioner. Travel lover. Food advocate."

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