House Democrats Urge Funding Boost for Wall Street’s ‘Cop on the Beat’
Kevin Edgar, 10 May 2021
House Financial Services Committee Chairwoman Maxine Waters is calling on Congress to increase funding for Securities and Exchange Commission (SEC) oversight of Wall Street’s “regulatory and market structure weak points.”
With SEC Chairman Gary Gensler signaling stepped-up enforcement of public companies and other SEC registrants, Democrats on Capitol Hill are leveraging their majority status to ensure the agency has the resources to meet its new chairman’s aggressive oversight mandate.
Rep. Brad Sherman, D-Calif., co-signed Waters’ letter to the leaders of the House Appropriations Committee calling for more SEC funding. Sherman is chairman of the Financial Services Committee’s Investor Protection, Entrepreneurship and Capital Markets Subcommittee. Continue reading “Article: House Democrats Urge Funding Boost for Wall Street’s ‘Cop on the Beat’”
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.
Read full article.
Watch Live: GameStop Hearing On Market Manipulation
Jonathan Ponciano, 18 February 2021
A Congressional hearing into the GameStop mania that triggered the largest weekly selloff since late October is underway, with some of the key players in the saga—billionaire Citadel CEO Kenneth Griffin, Robinhood CEO Vladimir Tenev, Reddit Cofounder Steve Huffman and the 34-year-old securities broker behind the Roaring Kitty online persona—all set to testify.
Committee Chair Maxine Waters (D-Mo.) kicked off the hearing by asking Tenev whether he misled investors on January 28 when he denied that Robinhood had a liquidity problem despite raising more than $3 billion in the following days to meet reserve requirements from the Securities & Exchange Commission. Continue reading “Article: Watch Live: GameStop Hearing On Market Manipulation”
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.
Read full article.
Government agencies probe GameStop pump over potential illegal manipulation
DUNCAN RILEY, 11 February 2021
U.S. government agencies have launched federal investigations into whether the social-media-driven activity around GameStop Corp.’s share price rise in January constituted illegal market manipulation.
According to a report today in The Wall Street Journal, both the U.S. Department of Justice and the Commodity Futures Trading Commission are formally investigating the pump of GME stock, and the Securities and Exchange Commission is also reviewing the matter.
The investigation by the justice department is being led by the department’s fraud section and the San Francisco U.S. attorney’s office who have sought information about the security activity from brokers and social media companies that were at the center of the trading frenzy. Subpoenas are said to have been issued for information to brokers including Robinhood Markets Inc. that was widely used by those buying up GameStop and other shares such as AMC Entertainment Holdings Inc. Continue reading “Article: Government agencies probe GameStop pump over potential illegal manipulation”
The Securities And Exchange Commission May Look Into Possible Market Manipulation Made By Reddit Day Traders Instead Of The Short-Selling Hedge Funds
Jack Kelly, 29 January 2021
It’s telling that regulators aren’t asking why high-end hedge funds were allowed to target vulnerable corporations, such as GameStop, in an alleged short-selling scheme to drive their victims into bankruptcy. As the stock price of their prey goes to nearly zero, the hedge fund honchos could earn multimillions—or billions of dollars–in profits off of the companies closing their doors and laying off thousands of employees into the worst job market in modern history.
Instead, according to the Wall Street Journal, the Securities and Exchange Commission (SEC) is looking into the young, goofy, fun-loving, scrappy and foul-mouthed novice investors on the r/wallstreetbets subreddit of Reddit. There is the feel of an institutional knee-jerk reaction to accept activities from established Wall Street professionals (no matter how odious it seems), while shining a harsh light on new—mostly naive—entrants into the financial community. Continue reading “Article: The Securities And Exchange Commission May Look Into Possible Market Manipulation Made By Reddit Day Traders Instead Of The Short-Selling Hedge Funds”
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