The GameStop Mess Exposes the Naked Short Selling Scam
LUCY KOMISAR, 25 February 2021
At the House Financial Services Committee hearing last week on the GameStop debacle, there was an elephant in the room: naked short selling.
Short selling, effectively betting that a stock will go down, involves a trader selling shares he does not own, hoping to buy them back at a lower price to make money on the spread. The trader is supposed to locate (or have a “reasonable belief” he can locate) or borrow the shares in brokerage accounts, and then transfer them to the buyer within two days. This accounts for as much as 50 percent of daily trading. Continue reading “Article: The GameStop Mess Exposes the Naked Short Selling Scam”
Trading hot stocks like GameStop seems fun until you look beneath the surface
Congress is asking questions about whether middlemen or “market makers” like Citadel that execute stock trades really give small investors the best prices.
Gretchen Morgenson, ABCNews, 18 February 2021
Market makers like Citadel make money by pocketing the difference between the price at which they buy shares — the bid — and the price they receive from selling them to Robinhood clients, the offer. Other firms in the business are Virtu Americas, G1X Execution Services and Two Sigma Securities.
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Reddit user behind GameStop saga releases opening statement ahead of hearing
Axios, 17 February 2021
Keith Patrick Gill, known on YouTube and Twitter as Roaring Kitty, released his opening statement ahead of testimony before the House Financial Services Committee on Wednesday about his role in the surge of GameStop’s stock price.
The big picture: Gill will join the CEOs of Reddit, Robinhood, Citadel and Melvin Capital at Wednesday’s hearing. The committee plans to “examine the recent activity around GameStop (GME) stock and other impacted stocks with a focus on short selling, online trading platforms, gamification and their systemic impact on our capital markets and retail investors,” per a statement by Rep. Maxine Waters (D-Calif.), chair of the committee.
Continue reading “Article: Reddit user behind GameStop saga releases opening statement ahead of hearing”
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”
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.
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Maxine Moore Waters (D-CA) is currently the chairwoman of the 116th Congress U.S. House Committee on Financial Services. She is an American politician serving as the U.S. Representative for California’s 43rd congressional district since 1991. The district, numbered as the 29th district from 1991–1993 and as the 35th district from 1993 to 2013. Waters is a member of the Democratic Party and is currently in her 15th term in the House. Before becoming a U.S. Representative, Waters served in the California State Assembly, to which she was first elected in 1976. Waters received her Bachelors Degree in Sociology in 1971 at Los Angeles State College (now California State University, Los Angeles), where she received a bachelor’s degree in sociology in 1971.
U.S. House Banking Committee on Financial Services