Article: Robinhood Is In Talks With FINRA To Settle March 2020 Probe Into Options And Outages

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Robinhood Is In Talks With FINRA To Settle March 2020 Probe Into Options And Outages

Tyler Durden, Zero Hedge,  26 February 2021
At the center of the investigation was how Robinhood displays cash balances and buying power to its customers and the process that it undertakes to vet and approve traders for options trading. Continue reading “Article: Robinhood Is In Talks With FINRA To Settle March 2020 Probe Into Options And Outages”

Article: SEC Suspends Trading In 15 Companies Due To “Questionable Trading And Social Media Activity”

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SEC Suspends Trading In 15 Companies Due To “Questionable Trading And Social Media Activity”

TYLER DURDEN, 26 February 2021

Two weeks ago we said that the regulatory crackdown against WallStreetBets had begun when the SEC suspended trading in pennystock Spectra Science (SCIE). Well, today we got the clearest confirmation yet that the SEC will do everything in its power to make sure that are no more Melvin Capitals and will seek to put a resolute end to the reddit bull raids when it announced that it “suspended trading in the securities of 15 companies because of questionable trading and social media activity.”

Today’s order states that trading is being suspended because of “questions about recent increased activity and volatility in the trading of these issuers, as well as the influence of certain social media accounts on that trading activity.” In enforcing the suspension, the SEC referred to federal securities laws, according to which “the SEC can suspend trading in a stock for 10 days and generally prohibit a broker-dealer from soliciting investors to buy or sell the stock again until certain reporting requirements are met.”
Continue reading “Article: SEC Suspends Trading In 15 Companies Due To “Questionable Trading And Social Media Activity””

Article: War Of Words: Robinhood Responds To “Disappointing, Elitist” Charlie Munger Bemoaning “Speculative Orgies”

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War Of Words: Robinhood Responds To “Disappointing, Elitist” Charlie Munger Bemoaning “Speculative Orgies”

TYLER DURDEN, 26 February 2021

Investing legend Charlie Munger didn’t pull any punches when talking about Robinhood and the gamification that is driving new investments in the stock market over the last few years. In an exclusive interview with the Wall Street Journal, the 97 year old Vice Chairman of Berkshire Hathaway sounded off about the “wild speculation” created by the budding brokerage.

“I hate this luring of people into engaging in speculative orgies. [Robinhood] may call it investing, but that’s all bullshit,” Munger said on Thursday.

“It’s really just wild speculation, like casino gambling or racetrack betting. There’s a long history of destructive capitalism, these trading orgies whooped up by the people who profit from them.”
Continue reading “Article: War Of Words: Robinhood Responds To “Disappointing, Elitist” Charlie Munger Bemoaning “Speculative Orgies””

Article: Public App Takes Aim At Robinhood With Already-Viral Michael Bolton Ad

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Public App Takes Aim At Robinhood With Already-Viral Michael Bolton Ad

Tyler Durden, ZeroHedge, 23 February 2021

On the same day that it hit the wires that Robinhood’s CEO said it was “necessary” for the company’s business operations to sell its order flow (as we have been detailing at painstaking length here on Zero Hedge for years before it became a mainstream media story) Continue reading “Article: Public App Takes Aim At Robinhood With Already-Viral Michael Bolton Ad”

Article: Former SEC Chair Jay Clayton Will Become Apollo’s “Lead Independent Director”

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Former SEC Chair Jay Clayton Will Become Apollo’s “Lead Independent Director”

As if the establishment ignoring Janet Yellen’s clear ties to Citadel wasn’t enough to help you lose faith in the Wall Street swamp this year, we’ll do you one better. Former SEC Chair Jay Clayton has officially been hired by Apollo Global Management, just weeks after stepping down as SEC chair.

Apollo is, of course, the firm whose CEO, Leon Black, was found to have paid child sex offender Jeffrey Epstein $158 million.

Continue reading “Article: Former SEC Chair Jay Clayton Will Become Apollo’s “Lead Independent Director””

Article: As Hearing Looms, Here Is How Gamma Was Weaponized Against GameStop

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As Hearing Looms, Here Is How Gamma Was Weaponized Against GameStop

Tyler Durden, 17 February 2021

In late January 2021, GameStop experienced a once-in-a-decade squeeze that has captivated the world’s attention. It was a premeditated and programmatic exercise, orchestrated by coordinated stock and option buying across the retail and professional community, resulting in large institutional entities losing billions of dollars. Investment houses with significant short positions did not expect a stock with GameStop’s fundamental profile to increase +2,500% in price over less than three weeks; therefore, they did not have the controls in place to handle the incredible levels of stock and call option purchases. The frenzy drew comments from the White House, provoked a social media crackdown, caused brokerage units to restrict trading, and has led to a Congressional hearing on GameStop on Thursday, February 18th.
Continue reading “Article: As Hearing Looms, Here Is How Gamma Was Weaponized Against GameStop”

Article: Citadel’s Griffin Likely To Be The Biggest Target Of Thursday’s Congressional Hearings

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Citadel’s Griffin Likely To Be The Biggest Target Of Thursday’s Congressional Hearings

Tyler Durden, 17 February 2021

Despite the fact that it was reported on Wednesday that Reddit ringleader Deepf*ckingvalue was being sued for securities fraud in the GameStop fiasco, Ken Griffin’s Citadel is likely going to be the biggest target during Thursday’s congressional hearings.

At the core of the runup in GameStop stock was Griffin’s Citadel, executing trades on behalf of Robinhood, who it pays for order flow. Griffin was also at the center of the controversy due to one of his other businesses offering up a $2 billion bailout to Melvin Capital, who was hit hard by the runup in shares.

And so, Griffin will likely become the target for all types of grandstanding and faux outrage at Thursday’s hearing, where a clueless House Financial Services Committee will do their best to fake any understanding of capital markets while attempting to put on a political show. Citadel could be the scapegoat for all types of new financial regulation, Bloomberg wrote on Wednesday.
Continue reading “Article: Citadel’s Griffin Likely To Be The Biggest Target Of Thursday’s Congressional Hearings”

Article: Here Are The Prepared Remarks For Tomorrow’s “Game Stopped” Hearings

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Here Are The Prepared Remarks For Tomorrow’s “Game Stopped” Hearings

Tyler Durden, 17 February 2021

On Thursday, the House Financial Services Committee will convene its planned hearing on the Gamestop trading fiasco, where the heads of Citadel, Robinhood, Reddit and Melvin Capital will come together to face off against Democrats like Committee Chairwoman Maxine Waters and AOC.

Ahead of that, some of the planned testimonials have been released.

Below, find remarks from Keith Gill, a Youtuber/Redditor best known as “RoaringKitty”. In his testimony, the trader- who is facing a lawsuit related to his trading and online antics – insists that he still believes in his “fundamental case” for being long Gamestop, and insists he didn’t try and pump the shares purely for his own profit.

Continue reading “Article: Here Are The Prepared Remarks For Tomorrow’s “Game Stopped” Hearings”

Article: House Hearing On GameStop Fiasco Will Focus On “Short Selling And Stock Manipulation”

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House Hearing On GameStop Fiasco Will Focus On “Short Selling And Stock Manipulation”

Tyler Durden, Zero Hedge, 16 February 2021

In order to affect change, one has to understand the problem before them. It is by those standards we can confidently say we are near-certain that this week’s upcoming congressional hearings on the GameStop fiasco will be both a useless circus and a intellectual farce.

Read full article.