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LIVE STREAM: Robinhood, Reddit CEOs testify in House hearing on GameStop stock saga
Read full article: LIVE STREAM: Robinhood, Reddit CEOs testify in House hearing on GameStop stock sagaThe episode has been portrayed as a victory of the little guy over Wall Street titans, but not everyone is buying it. The head of the panel, Rep. Maxine Waters, D-Calif., is homing in on hedge funds, which she says have a history of “predatory short-selling." Chicago-based Citadel is one of the biggest hedge funds, and its separate securities-dealing business handles an estimated 25% of all U.S. stock trading. Not coincidentally, it inflicted billions in losses on the hedge funds that had placed bets that the stocks would drop. GameStop stock plunged 60%, to $90 on Feb. 2, wiping out hundreds of thousands of dollars in a few hours.
Lawmakers to face off with GameStop saga's key players
Read full article: Lawmakers to face off with GameStop saga's key playersThe GameStop saga has been portrayed as a victory of the little guy over Wall Street giants but not everyone agrees, including some lawmakers in Washington. GameStop shares soared 1,600% in January before falling back to earth. GameStop stock plunged 60%, to $90 on Feb. 2, wiping out hundreds of thousands of dollars in a few hours. A raft of lawsuits were filed against Robinhood in federal court by platform users who suffered losses when they were frozen out of GameStop trading. There are indications that contrary to the populist fable, it was the Wall Street titans that mostly benefited in the end from the GameStop rollercoaster.