US House of Representatives committee investigates stock turmoil at video game retailer – hearing Thursday.
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In addition to hedge fund managers and company bosses, the YouTuber “Roaring Kitty” has to testify to a committee of the US House of Representatives about the turbulence in stocks at the video game retailer GameStop. The list of witnesses was announced in Washington on Friday by Democratic Congressman Maxine Waters.
The 34-year-old Keith Gill, who hides behind the pseudonym “Roaring Kitty”, caused a sensation on reddit at the end of 2019 when he shared a screenshot that confirmed that he had invested more than 50,000 US dollars in Gamestop shares . The stock was worth just $ 6 at the time. He is therefore generally considered to be the founder of the reddit rush on the shortened Gamestop course.
On the list of witnesses for the US Congress, alongside Gill, are the head of the Robinhood trading platform, Vlad Tenev, and the heads of the Citadel and Melvin hedge funds. You should testify next Thursday.
The Financial Services Committee is investigating how GameStop and other stocks have been propelled to dizzying heights. With concerted purchases, small investors had forced hedge funds to dissolve bets on the decline of the GameStop price, which in some cases even got them into a mess and upset the world's stock exchanges. Silver and the crypto currency Ripple have also recently seen violent price movements on the market.
The virtual hearing entitled “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide” will be broadcast live. The judiciary and the US government are already preoccupied with the controversy.
Robinhood and other brokers had temporarily restricted purchases from the video game provider and thus triggered outrage across party lines in the USA. Both houses of Congress have announced hearings on what is going on. The Texas attorney general spoke of signs of collusion between hedge funds and other parties to stave off a threat to their market dominance.
The bets on price losses at GameStop have cost hedge funds dearly. Since the beginning of the year, their losses add up to 12.5 billion dollars, according to recently published data from data provider Ortex. Some funds had their backs to the wall, including Melvin Capital. The hedge funds Point72 and Citadel had to save their partner from collapse with an injection of billions.
