After scheduling a hearing into the GameStop trading fiasco, House Financial Services Committee Chairwoman Maxine Waters told Cheddar that she wanted Reddit trader Keith Gill, the Robinhood CEO, and a representative from GameStop to testify.
“I have [Keith Gill] on my list to be present…I want him here… And I want absolutely to have Robinhood. I even want to have GameStop here,” Rep. Waters told Cheddar.
—j.d. durkin (@jiveDurkey) February 3, 2021
Earlier in the day, Waters confirmed to Bloomberg that she is actively working on the invite list for the February 18 hearing.
“I have my wish list but it’s not finalized yet. I’m trying to get everybody that, you know, has a role to play. I want Reddit there. I want Robinhood there. I even want GameStop there. And I want a couple of the hedge funds there,” Rep. Waters told Bloomberg. “I’m looking at Citadel and Melvin Capital.”
Announcing the hearing last week, Waters said that, “Addressing that predatory and manipulative conduct is the responsibility of lawmakers and securities regulators who are charged with protecting investors and ensuring that our capital markets are fair, orderly, and efficient.”
Keith Gill, who goes by “DeepF—ingValue” on Reddit’s WallStreetBets forum and Roaring Kitty on YouTube, is widely credited with leading the charge in bolstering the buying of GameStop stock alongside retail investors in the subreddit, leading the company’s stock price to skyrocket 8,000% over the last six months.
According to The New York Times, regulators may be looking at Gill for promoting GameStop stock while still employed and leaving former employer MassMutual.
On January 28th, trading platform Robinhood pulled the rug from under retail investors, freezing trades on GameStop ($GME), AMC ($AMC), BlackBerry ($BB), Bed Bath & Beyond ($BBBY), and Nokia ($NOK), all stocks that Reddit users were buying.
Prior to the surges, major hedge funds had been heavily shorting, or betting against, those stocks.
Robinhood called its freeze a “risk-management decision” due to “extraordinary circumstances.” After the frenzy, Robinhood also announced that it raised $1 billion from existing investors this week.