Robinhood Markets, GameStop Corp. and hedge funds are all on the wish list that House Financial Services Committee chairman Maxine Waters is putting together for an audience that will investigate the Reddit-fueled stock negotiations that shocked Wall Street and lawmakers.
“I’m trying to get everyone to have a role to play,” Waters said in an interview, without naming specific executives he plans to ask to testify. “I want Reddit there. I want Robinhood there. I even want GameStop there. And I want some hedge funds there. “
The California Democrat cited Citadel, the hedge fund founded by billionaire Ken Griffin, and Melvin Capital, who lost 53% in January after being beaten by a little pressure from GameStop that was orchestrated by an army of retail investors posting on the Reddit forums.
Waters also indicated that she could ask Keith Gill, a credited Reddit contributor for inspiring the remarkable GameStop rally, to appear. On YouTube, Gill goes by the nickname “Roaring Kitty”.
“Young man, I think his name is ‘Gill’, it kind of started it all, I have it on my list,” said Waters.
The February 18 hearing will offer lawmakers the chance to interrogate Wall Street titans and ask about possible reforms that may be needed to tame a market that, at least temporarily, has distanced itself from economic reality. GameStop, which is not expected to make a profit for years, is on a wild ride, reaching $ 347.51 per share last month, before closing at $ 92.41 in New York trading on Wednesday.
Retail investors fueled the increase, but some have now likely been hit by the losses, raising concerns that they are taking risks they don’t understand and cannot afford.
Robinhood, Citadel and Melvin have leading roles in the saga. Robinhood is where most retail investors made their bullish bets on GameStop, before the brokerage outraged them last week by restricting its customers from buying new shares at the video game retailer.
In addition to his hedge fund, Griffin also controls Citadel Securities, a giant market that pays Robinhood for the right to trade its clients’ shares. Griffin and his partners invested $ 2 billion in Melvin while she fought her losses at GameStop.
(An earlier version corrected the spelling of Melvin Capital)