{"id":113462,"date":"2021-02-19T00:44:19","date_gmt":"2021-02-19T00:44:19","guid":{"rendered":"https:\/\/precoinnews.com\/?p=113462"},"modified":"2021-02-19T00:44:19","modified_gmt":"2021-02-19T00:44:19","slug":"robinhood-hedge-fund-chiefs-face-irate-questions-at-gamestop-hearing","status":"publish","type":"post","link":"https:\/\/precoinnews.com\/markets\/robinhood-hedge-fund-chiefs-face-irate-questions-at-gamestop-hearing\/","title":{"rendered":"Robinhood, hedge fund chiefs face irate questions at GameStop hearing"},"content":{"rendered":"
WASHINGTON (Reuters) – The head of trading app Robinhood and Wall Street hedge fund managers on Thursday fielded a barrage of questions in the U.S. Congress about their role in the GameStop trading frenzy, at times being cut off by irate lawmakers who found their answers wanting.<\/p>\n
Financial heavyweights including billionaire Republican mega-donor and Citadel CEO Ken Griffin defended their businesses at the hearing, which lasted more than five hours. Lawmakers probed how Reddit users trading on retail platforms squeezed hedge funds that had bet against shares of the video game retailer and other companies.<\/p>\n
\u201cRobinhood owns what happened and we need to make sure it doesn\u2019t happen again,\u201d said Robinhood CEO Vlad\u202f Tenev, who appeared to field the most questions.<\/p>\n
Robinhood and other trading apps drew fire for putting trading limits on GameStop a day after the stock price more than doubled. The trading platforms, who face numerous lawsuits, said the limits were needed because the massive volatility prompted clearing houses that guarantee trades to call for billions of dollars in extra collateral.<\/p>\n
But outraged lawmakers questioned if the platforms were siding with hedge funds over retail investors.<\/p>\n
Representative Sean Casten, an Illinois Democrat, played an automated message on the Robinhood customer service phone line while questioning Tenev about how customers are treated.<\/p>\n
Griffin got numerous questions which focused on his company\u2019s heft. Melvin Capital CEO Gabriel \u202fPlotkin and Reddit CEO Steve Huffman also appeared.<\/p>\n
Keith Gill, a Reddit user and YouTube streamer known as Roaring Kitty, sat in a red videogaming chair from which he recorded many videos promoting his investment in GameStop. Displayed behind him was a poster of a kitten with the caption \u201cHang in there!\u201d Many investors who bought GameStop as the price skyrocketed now face deep losses.<\/p>\n
\u201cA few things I am not. I am not a cat. I am not an institutional investor, nor am I a hedge fund,\u201d Gill said. He told lawmakers he was still enthusiastic about the stock.<\/p>\n
Related Coverage<\/p>\n<\/p>\n
See more stories