Roaring Kitty to testify on GameStop alongside hedge fund managers
(Reuters) - The YouTube streamer known as Roaring Kitty, who helped drive a surge of interest in GameStop Corp, will testify before a House panel on Thursday alongside top hedge fund managers. The House Financial Services Committee is examining how an apparent flood of retail trading drove GameStop and other shares to extreme highs, squeezing hedge funds like Melvin Capital that had bet against it.
(Reuters) - The YouTube streamer known as Roaring Kitty, who helped drive a surge of interest in GameStop Corp, will testify before a House panel on Thursday alongside top hedge fund managers.
The House Financial Services Committee is examining how an apparent flood of retail trading drove GameStop and other shares to extreme highs, squeezing hedge funds like Melvin Capital that had bet against it.
The witness list was announced on Friday by Congresswoman Maxine Waters and includes Keith Gill, who also goes by Roaring Kitty, Robinhood chief executive Vlad Tenev, Citadel chief executive Kenneth Griffin, Melvin chief executive Gabriel Plotkin and Reddit chief executive Steve Huffman.
The virtual hearing, entitled “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide," will take place on Feb. 18 at 1200 ET (1700 GMT), according to the press release and will be livestreamed here https://financialservices.house.gov/live. Waters, a Democrat, is Chair of the House Committee on Financial Services.
"We are working with the House Financial Services Committee and plan to testify," Reddit's Huffman said in an emailed statement. Representatives for Melvin, Citadel and Robinhood did not respond to requests for comment. Gill could not be reached for comment.
Robinhood, Reddit, Melvin and Citadel have been at the center of the GameStop saga, which saw retail traders promote GameStop on the Reddit forum WallStreetBets. Robinhood emerged as a popular venue to trade the stocks but was criticized for temporarily restricting trading in the hot stock.
The GameStop surge resulted in massive losses for Melvin, after the hedge fund bet the retailer’s stock price would tumble. Citadel’s hedge funds, along with founder Griffin and firm partners, put $2 billion into Melvin.
Democrats and Republicans are united in their outrage by Robinhood's decision to suspend trading in the so-called "meme stocks" on Jan. 28. Tenev said the company had to impose the restrictions after wild trading in the stocks triggered a $3 billion margin call by Robinhood's clearing house, straining the company's balance sheet.
Massachusetts securities regulators have also issued a subpoena seeking Gill's testimony.
(Reporting by Michelle Price and Megan Davies, additional reporting by Svea Herbst-Bayliss and John McCrank; Editing by Sonya Hepinstall and Daniel Wallis)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.