Connect with us


Hedge funds and Robinhood face congressional rally on GameStop Reddit




WASHINGTON (Reuters) – Wall Street hedge fund managers, the managing directors of Robinhood and Reddit and a YouTube streamer known as Roaring Kitty face a scorch on Thursday afternoon from U.S. lawmakers at the rally of Reddit in actions of GameStop Corp.

FILE PHOTO: The GameStop logo can be seen in front of the Reddit logo shown in this illustration taken February 2, 2021. REUTERS / Dado Ruvic / Illustration / File Photo / File Photo

Some of Wall Streets’ most powerful players, including billionaire Republican mega-donor and Citadel CEO Ken Griffin, will make rare public statements about their business practices during the congressional hearing on how Reddit users are trading on retail platforms rallied to squeeze hedge funds that had bet against shares of the video game retailer and other companies.

Griffin will appear before the Democratic-led House finance panel alongside Robinhood CEO Vlad Tenev, Melvin Capital CEO Gabriel Plotkin, Reddit CEO Steve Huffman and Keith Gill, a known Reddit user and YouTube streamer under the name Roaring Kitty which promoted its investment in GameStop.

The five men were at the center of the saga that rocked Wall Street in January, which prompted several federal and state agencies to investigate.

With critical Wall Street representative Maxine Waters at the helm and Alexandria Ocasio-Cortez and other progressives in the 54-member panel, the audience promises to be tough, with tough questions for Tenev, Griffin and Plotkin in particular.

Once or twice a year an audience lends itself to a good theater … Thursday’s audience is one of those rarities, wrote Ian Katz at Alpha Partners in Washington, adding that the hedge fund tycoons would likely be the main targets of Democrats.

A spokesperson for Waters declined to comment ahead of the hearing. In prepared testimony released Wednesday, witnesses generally agreed that the GameStop saga was unprecedented, but they all said there was no fault on their part.

Graphic: Rise and fall of GameStop Rise and fall of GameStop –

Graphic: GameStop comments soared on Reddit’s Wallstreetbets –

The Reddit rally has resulted in massive volatility from GameStop and other stocks, prompting post-trade clearinghouses that guarantee trades to call billions of dollars in additional collateral from Robinhood and other trading venues. detail.

In response, many suspended their purchases of the affected stocks on January 28. Lawmakers on both sides were outraged and questioned whether trading venues were siding with hedge funds at the expense of Mom and Pop investors.

New York-based Melvin Capital, one of many hedge funds that had bet GameStops shares would fall, suffered massive losses as the stock soared through January 28. Citadel invested $ 2 billion in Melvin on January 25. [L1N2KM064]

Lawmakers will likely focus on whether Robinhood made it too easy for small investors to take risks, analysts said. Its trade deals with the market makers to which it routes orders can also be a hot topic, they said, as well as whether this payment model for the flow of orders may disadvantage customers.

Robinhood says few of its clients engage in risky transactions, while paying for the order flow often helps clients get better prices than trades on the stock exchange.

Tenev, Griffin and Plotkin are likely to be grilled on the short sale, and whether Robinhood’s decision to suspend the purchase of the affected shares was influenced by Citadel or Griffin, which majority owner of Citadel Securities, a market maker of Robinhood.

All parties have denied any attempt by Citadel or Citadel Securities to influence the policies of Robinhoods.

Yet legislative action is unlikely once the fireworks have dispelled, said Isaac Boltansky, director of policy research at Washington-based Compass Point Research & Trading.

We doubt Washington can advance an acute political prescription when broader concerns about the structure of the stock market and economic equality complicate the conversation.

Reporting by Michelle Price and Pete Schroeder; Edited by David Gregorio

What Are The Main Benefits Of Comparing Car Insurance Quotes Online

LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos

picture credit


to request, modification Contact us at Here or [email protected]