The YouTube streamer often known as Roaring Kitty, who helped drive a surge of curiosity in GameStop Corp, will testify earlier than a US Home panel on Thursday alongside prime hedge fund managers.
The Home Monetary Providers Committee is inspecting how a flood of retail buying and selling drove GameStop and different shares to excessive highs, squeezing hedge funds like Melvin Capital that had wager towards it.
The witness listing was introduced on Friday by Consultant Maxine Waters and contains Keith Gill, who additionally goes by Roaring Kitty, Robinhood Chief Govt Vlad Tenev, Citadel CEO Kenneth Griffin, Melvin CEO Gabriel Plotkin and Reddit CEO Steve Huffman.
The digital listening to, entitled “Sport Stopped? Who Wins and Loses When Quick Sellers, Social Media, and Retail Buyers Collide,” will happen on Thursday at 12 p.m. ET (1700 GMT), in line with the press launch and might be livestreamed https://financialservices.home.gov/dwell. Waters, a Democrat, is chair of the Home Committee on Monetary Providers.
“We’re working with the Home Monetary Providers Committee and plan to testify,” Reddit’s Huffman stated in a press release. A spokesperson for Melvin confirmed that Plotkin plans to testify.
Representatives for Citadel and Robinhood didn’t reply to requests for remark. Gill couldn’t be reached for remark.
Robinhood, Reddit, Melvin and Citadel have been on the heart of the GameStop saga, which noticed retail merchants promote GameStop on the Reddit discussion board WallStreetBets. Robinhood emerged as a well-liked venue to commerce the shares however was criticized for briefly limiting buying and selling within the scorching inventory.
The GameStop surge resulted in huge losses for Melvin, after the hedge fund wager the retailer’s inventory value would tumble. Citadel’s hedge funds, together with founder Griffin and agency companions, put $2 billion into Melvin.
Democrats and Republicans are united of their outrage by Robinhood’s resolution to droop buying and selling within the so-called “meme shares” on Jan. 28. Tenev stated the corporate needed to impose the restrictions after wild buying and selling within the shares triggered a $three billion margin name by Robinhood’s clearing home, straining the corporate’s stability sheet.
Massachusetts securities regulators have additionally issued a subpoena looking for Gill’s testimony.