Robinhood CEO To Testify Before Congress – Is This The End Of Robinhood ? Robinhood Congress Hearing
Robinhood chief to appear before the US Congress
Robinhood CEO will report to the US Congress for the decision to stop trading some stocks
Democrats set to find out if there was collusion on Wall Street
Reddit-Wall Street traders’ war has already resulted in the loss of billions of dollars
Robinhood co-founder Vlad Tenev to appear before the US Congress after a scandal with the suspension of trading in hype stocks
The head of the American service for trading shares Robinhood Vlad Tenev will testify in the US House of Representatives on February 18.
This is reported by Politico, citing internal sources..
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Now Congress is looking into the role Robinhood played in GameStop stock trading. House of Representatives Financial Services President Maxine Waters vows to investigate whether there was a Wall Street collusion or not.
“I am worried if Robinhood restricted trading due to collusion with hedge funds involved,” Waters told MSNBC..
Whether Democrats will ask other financial institutions to testify remains to be seen.
Robinhood at gunpoint
Nonetheless, Democrats are already exploring the role of Citadel and Citadel Securities in the recent scandal..
Both firms have previously disclaimed liability due to Robinhood’s decision to suspend HYIP stock trading. However, it was Citadel that saved Robinhood from bankruptcy due to market volatility..
Citadel Securities also pays a broker to carry out transactions with shares.
Recall that the broker’s decision to block trading in HYIP stocks led to a collapse in their value. However, such an ambiguous decision naturally drew criticism from Congresswoman Alexandria Ocasio-Cortez, Senator Ted Cruz and other legislators.
Recall that in mid-January, private traders from Reddit decided to inflate the prices of losing stocks.
Then, due to the pump of shares, the short players (including the hedge fund Melvin Capital) lost billions of dollars..
In just two weeks, unprofitable stocks managed to overcome the highs several times. Wall Street scandal reached the White House, although they declined to comment on the situation.
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