After scheduling a hearing on GameStop’s trading fiasco, House Financial Services Committee chairman Maxine Waters told Cheddar that he wanted Reddit trader Keith Gill, Robinhood’s CEO, and a GameStop representative to testify. .
“I have [Keith Gill] on my list to be present … I want him here … And I absolutely want Robinhood. I even want to have GameStop here, “Rep. Waters told Cheddar.
—Jd durkin (@jiveDurkey) February 3, 2021
Earlier in the day, Waters confirmed to Bloomberg that he is actively working on the guest list for the February 18 hearing.
“I have my wish list, but it’s not finished yet. I’m trying to get everyone who, you know, has a role to play. I want Reddit there. I want Robinhood there. I want GameStop there. And I want a few of the hedge funds there, “representative Waters told Bloomberg. “I’m looking at Citadel and Melvin Capital.”
Announcing the hearing last week, Waters said that “dealing with this predatory and manipulative conduct is the responsibility of the legislators and securities regulators charged with protecting investors and ensuring that our capital markets are fair, orderly and efficient”.
Keith Gill, who goes by “DeepF — ingValue” on Reddit’s WallStreetBets forum and Roaring Kitty on YouTube, is widely credited for leading the charge in strengthening GameStop’s stock purchase alongside retail investors on the subreddit, driving the company’s stock price to skyrocket 8,000% in the past six months.
According to The New York Times, regulators may be looking to Gill to promote GameStop shares while he was still employed and leaving former employer MassMutual.
On January 28, the trading platform Robinhood pulled the mat from retail investors, freezing trades on GameStop ($ GME), AMC ($ AMC), BlackBerry ($ BB), Bed Bath & Beyond ($ BBBY) and Nokia ($ NOK), all the shares that Reddit users were buying.
Prior to the outbreaks, the major hedge funds were either selling heavily, or betting against, these shares.
Robinhood called his freeze a “risk management decision” due to “extraordinary circumstances”. After the frenzy, Robinhood also announced that he raised $ 1 billion from existing investors this week.