Democrats in the House of Representatives held a heated debate with Robinhood and Citadel at the GameStop hearing on Thursday (18th). The legislature promised to stand on the same front with retail investors and will conduct a series of investigations on Wall Street’s actions and research related matters. Regulations.
In a hearing held by the House of Representatives Financial Services Commissioner, members of Robinhood CEO Vlad Tenev and Citadel Capital CEO Ken Griffin were repeatedly questioned about the suspension of trading due to shortage of funds and whether “free trade” is truly free.
These high-level responses have been interrupted and mocked by lawmakers from time to time. California Democrat Brad Sherman believes that Griffin has not responded positively to whether Citadel is seeking the best deal for customers; Tenev is accused of not fully informing inexperienced investors What risks to take; New York Democrat Carolyn Maloney said Robinhood should ensure that retail investors do not suddenly lose support.
Tenev strongly denied that Robinhood’s suspension of trading involved market manipulation, and explained that it was forced to allocate more than 3 billion during the short squeeze.USDThe collateral will be halted urgently to avoid damage.
What is remarkable is that after some questioning, Tenev suddenly publicly apologized and admitted that Robinhood had failed to meet the needs of customers. He said that although it could not be perfect, he promised to ensure growth from failure.
YouTuber “Roaring Kitty” Keith Gill, who called on retail investors, insisted that he only trusted Roaring Kitty general investors in the incident and declared that he was not a financial adviser, nor had he been involved in manipulating stock prices or having any connection with hedge funds.
Develop a new law to check and balance Wall Street?
The GameStop incident has caused problems of market fairness and the disconnection of stock prices from reality, posing a threat to financial stability, and has also attracted the attention of the legislature.
Democrat Maxine Waters, who is also the chairman of the Financial Services Committee, said: “Many investors believe that Wall Street will win when they are opposed by the financial system. However, this incident has caused the public to focus more on Wall Street and the “predatory trading” of some hedge funds. “.”
Waters promised that a series of hearings will be held on this level in the future. The Financial Services Commission will seek testimony from relevant regulatory agencies, and many members of the Commission have also made it clear that they will work side by side with retail investors.
Regulators such as the US Securities and Exchange Commission (SEC) are considering providing more potential protections for millennial investors in the Robinhood platform. The SEC and the Department of Justice (DOJ) are also investigating whether any investors have illegally manipulated shares such as GameStop. share price.
Republican Congressman Patrick McHenry said that this incident shows that the nature of the market has changed, mainly because the new technology of the trading platform allows retail investors to enter the market, and these investors have been denied access to the market for many years, which led to this incident.
–
