GameStop affair: stock marketers defend their arguments before Congress

 

 


 

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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