The United States Congress is hearing, this Thursday, the various
parties linked to the recent surge in GameStop sales. The opportunity
for American elected officials to hear the arguments of stock marketers.
While
the action of GameStop is gradually returning to its 'normal' course,
and the tension is mechanically lowering, now comes the time to be
accountable to high American authorities. This Thursday, February 18
across the Atlantic, Congress is collecting a number of important
testimonies, supposed to help its members understand the GameStop
phenomenon of recent weeks.
The main 'faces' of the GameStop case called to testify
The House
of Representatives Committee on Financial Services wants to hear the
versions of several protagonists of the 'GameStop affair', including the
CEO of Robinhood, the platform through which most of the movements of
stock marketers have passed.
Among them are also the directors of
investment funds Citadel and Melvin Capital; the CEO. from Reddit,
Steve Huffman; a user of the Reddit platform, widely publicized during
the panic in the rating of GameStop; and well-known YouTuber Roaring
Kitty, who is now the subject of a class action lawsuit for stock market
fraud, filed this week.
Representatives want to know how hedge
funds (hedge funds), which bet on a lower price, reacted when they saw
the stock soar. But above all, their primary interest is on Reddit users
and how they have organized themselves to bring down hedge funds,
investing heavily in different companies in or near sinking, like
GameStop or AMC.
Stock Marketers vs. Short Selling Stocks: Who Manipulated the Market?
For
the US Congress, this is to shed light on a file that greatly shook
Wall Street and made other investors fear the worst, on other
securities. And let's count on the representatives to spare no part.
Democrat Maxine Waters, for example, intends to target hedge funds,
which for her have long adopted an 'unethical' behavior, by betting on
the volatility of securities.
Waters, a historical figure on the
Financial Services Commission, gives credit to the actions of stock
marketers, who she says 'seem motivated by beating Wall Street at its
own game.' On the side of the Republicans, we talk about 'a break with
history', with an equally strong desire to understand what happened.
If
we understand on the symbolic level the approach of stock market
enthusiasts, Congress wants to determine whether, from a legal point of
view this time, we can qualify the event as insider trading, or price
manipulation. And stock marketers will undoubtedly be undermined by
'adverse' testimonies, the Citadel and Melvin Capital funds will most
certainly go on a crusade to defend the practice of short-selling
shares, which is particularly criticized and which, according to some
politicians, would be a real tool for manipulating the market.
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