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WEATHER ALERT

11 advisories in effect for 11 regions in the area

HOUSE HEARINGS


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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 saga

The 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.

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