{"id":145136,"date":"2021-02-18T10:51:47","date_gmt":"2021-02-18T15:51:47","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=145136"},"modified":"2021-02-18T10:58:31","modified_gmt":"2021-02-18T15:58:31","slug":"house-financial-services-committee-to-hear-testimony-on-gamestop-stock-shorting-frenzy-from-ceos","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/house-financial-services-committee-to-hear-testimony-on-gamestop-stock-shorting-frenzy-from-ceos\/","title":{"rendered":"House Financial Services Committee to hear testimony on GameStop stock shorting frenzy from CEO\u2019s"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">28<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhouse-financial-services-committee-to-hear-testimony-on-gamestop-stock-shorting-frenzy-from-ceos%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=145136&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div id=\"attachment_2374526\" class=\"wp-caption aligncenter\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2374526\" loading=\"lazy\" class=\"wp-image-2374526 size-large\" src=\"https:\/\/dzm0ugdauank9.cloudfront.net\/wp-content\/uploads\/2021\/02\/AP21040058197445-655x437.jpg\" alt=\"FILE - This Dec. 17, 2020, file photo shows the logo for the Robinhood app on a smartphone in New York. In a complaint filed Monday, Feb. 8, 2021, the family of a novice stock trader who killed himself after mistakenly believing he lost more than $700,000 are suing Robinhood Financial, claiming the popular stock trading platform\u2019s business practices \u201cdirectly\u201d led to their son\u2019s death. (AP Photo\/Patrick Sison, File)\" width=\"655\" height=\"437\" \/><\/p>\n<p id=\"caption-attachment-2374526\" class=\"wp-caption-text\">FILE \u2013 This Dec. 17, 2020, file photo shows the logo for the Robinhood app on a smartphone in New York. (AP Photo\/Patrick Sison, File)<\/p>\n<\/div>\n<h5>OAN Newsroom<br \/>UPDATED 7:51 AM PT \u2013 Thursday, February 18, 2021<\/h5>\n<p>What began as a joke on a small internet forum is about to become the focus of a congressional hearing. On Thursday, several witnesses will deliver testimony before the House Financial Services Committee, including Robinhood CEO Vlad Tenev, Reddit CEO Steve Huffman and a number of traders involved in the scandal.<\/p>\n<p>This marks the first hearing since a group of retail traders began buying stock of GameStop in late January, which caused the stock value to jump from $64 a share to $468 in about three days.<\/p>\n<p>\u201cWe\u2019re not as dumb as everyone thinks we are\u2026people will say we\u2019re in a casino, betting on AMC and GameStop and whatever it may be, but the real fact of it is some of us are out there and we\u2019re seeing these companies, these hedge funds, that have been getting away with this for years,\u201d stated Robinhood trader JJ Buckner. \u201cOver-shorting these companies and hammering these companies into the ground, and no one says anything.\u201d<\/p>\n<p>Tenev has already admitted his company could have done more to communicate with its customers before it decided to halt trading. In his prepared testimony, he reiterated claims that the move was not prompted by requests from hedge fund managers and that all users are made aware the app has \u201csole discretion to restrict trading without prior notice.\u201d<\/p>\n<p>\u201cFirst of all, I want to address some of the misinformation that\u2019s been out there because there is a lot of it,\u201d Tenev stated. \u201cWe absolutely did not do this at the direction of any market maker or hedge fund or anyone we route to or other market participants.\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">That is what enables Robinhood to offer quality execution on trades \u2013 you can always check that on our website. <a href=\"https:\/\/t.co\/g4WIfBX4xn\">https:\/\/t.co\/g4WIfBX4xn<\/a> (8\/11)<\/p>\n<p>\u2014 VLAD (@vladtenev) <a href=\"https:\/\/twitter.com\/vladtenev\/status\/1359322132870664194?ref_src=twsrc%5Etfw\">February 10, 2021<\/a><\/p>\n<\/blockquote>\n<p>\u201cThe reason we did it was because Robinhood is a brokerage firm,\u201d Tenev continued. \u201cWe have lots of financial requirements, including SEC net capitol requirements and clearinghouse deposits, so that\u2019s money we have to deposit at various clearinghouses.\u201d<\/p>\n<p>Furthermore, the decision was made to \u201cmeet regulatory deposit requirements\u201d outlined by the Securities and Exchange Commission, which Tenev said sent out an investor alert on January 30 and told broker dealers they could restrict trading \u201cfor legal compliance or risk management reasons.\u201d These rules, Tenev noted, are ultimately prohibiting new investors who have entered the market for the first time and that \u201cthe financial system needs to catch up.\u201d<\/p>\n<h4>MORE NEWS: <a href=\"https:\/\/www.oann.com\/biden-warns-china-will-eat-our-lunch\/\">Biden warns \u2018China will eat our lunch\u2019<\/a><\/h4>\n","protected":false},"excerpt":{"rendered":"<p> &#8230;<\/p>\n","protected":false},"author":1,"featured_media":2181219,"comment_status":"close","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/dzm0ugdauank9.cloudfront.net\/wp-content\/uploads\/2021\/02\/AP21040058197445-655x437.jpg","fifu_image_alt":"House Financial Services Committee to hear testimony on GameStop stock shorting frenzy from CEO\u2019s","footnotes":""},"categories":[],"tags":[],"class_list":["post-145136","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/dzm0ugdauank9.cloudfront.net\/wp-content\/uploads\/2021\/02\/AP21040058197445-655x437.jpg","fifu_image_alt":"House Financial Services Committee to hear testimony on GameStop stock shorting frenzy from CEO\u2019s","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/145136","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=145136"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/145136\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2181219"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=145136"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=145136"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=145136"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}