Robinhood, Citadel, Melvin execs to testify to Congress on GameStop volatility
Feb. 10, 2021 12:22 PM ETGameStop Corp. (GME), HOOD, REDDITGME, HOOD, REDDITBy: Liz Kiesche, SA News Editor65 Comments
- Executives from Robinhood (RBNHD), Citadel Securities, and Melvin Capital are expected to testify before a House panel at a hearing on Feb. 18 to explore the trading turmoil in GameStop (GME +5.7%) and other stocks discussed on Reddit (REDDIT), Reuters reports, citing two people familiar with the matter.
- The hearing comes after GME soared in late January/early February as Redditors attempted to run up some stocks that were shorted by hedge funds.
- Melvin Capital was one of those hedge funds; as a result Citadel and Steve Cohen's Point72 Asset Management invested $2.75B in Melvin to help stabilize the fund.
- Stock trading app Robinhood had halted trading of GME and several other affected stocks after its clearinghouse required the company to increase its margin deposit as GME shares soared.