What We Want to Know About GameStop
We have questions
This afternoon, the House Financial Services Committee will dive into the meme-stock frenzy, questioning some of the major players in the frenzy around Gamestop and other stocks backed by Internet forums. the hearing – in which most of the committee’s 53 members are scheduled to attend – threaten to be full of noise and naps, as these events often take place.
Here’s who is on deck to testify today, and questions that can elicit the most illuminating responses.
Vlad Tenev Of Robinhood. His online brokerage was the preferred location for the frenzy, but capital constraints caused resentment across the political spectrum due to his decision to stop some trading in GameStop and other stocks.
You are lobbying for real-time settlement of stock trades, stating that the trade of Robinhood is currently under a two-day delay. If there was a real-time settlement, would your brokerage have enough capital to avoid a frenzy at the height of the frenzy?
Robinhood says that it offers free trade to retail investors, but that’s because your company sells customers to traders like securities securities. Can you explain the benefits to firms that pay you to execute trades?
Brokerages lend their clients’ shares to short sellers. Would you consider asking Robinhood users to allow you to lend your holdings?
Ken griffin Of Citadel Securities. Billionaire business empire Both include a large hedge fund in which bets were placed against Gametop and a huge market maker that executes trades for Robinhood and others.
Gab Plotkin Of Melvin Capital. His hedge fund, and its big bet against Gametop, was a primary target of contempt by Reddit traders who sought to squeeze it out.
How it allows shares like GameStop to pay more than 100 percent less interest – that is, fewer being sold than when the company’s shares are available for sale – make financial markets more efficient, as small as Sellers claim?
Jennifer shulpa Of Cato Institute. The director of the financial regulation study at the think tank plans to investigate whether the meme-stock incident did not pose a systemic risk.
Steve huffman Of reddit. Their online platform is home to WallStreetBets, the platform that helped egg on the meme-stock craze.
As a “roaring kitty” from your personality on YouTube, you were the director of financial welfare education at MassMutual. With your “Financial Wellness” cap, what message would you have given to customers about investing in GameStop?
You say that you were “as sharp as I ever was” about GameStop. What is your price target?
Times will last A live briefing with video and analysis Hearing begins at noon until eastern.
What’s going on over here
Facebook and Google come to the opposite conclusion of paying for news in Australia. A proposed law in the country would require platforms Pay media publishers for content Which appear on their sites. In response, Google announced an agreement with News Corp (One of many this week), While Facebook All links to news articles blocked On its stage in Australia.
The Pfizer / Bioentech Kovid-19 vaccine is effective against the South African strain. Bullet one occurred Slightly lower immune response Differently from earlier versions of the virus, but able to neutralize it, new research has revealed.
Texas freeze shakes global oil markets. Texas’s shale production cuts due to winter storms – about four million barrels a day of production – is Maintaining petroleum prices Whole world. Saudi Arabia plans to leverage Production increased.
Rush Limbaugh died at age 70. Right-wing abettor made talk radio A powerful force in business and politics. The Allies praised him as a pioneer for political pundits; Critics say he advised Trumpian politics to be a conspiracy.
Is Robinhood a cryptocurrency whale? The online brokerage appears to be the largest holder of Dogcoin, a digital token whose value has risen nearly 1,000 percent in recent weeks, According to reports. Robinhood itself will not confirm speculation.
Everyone is an influential person now
We are all condensersPromotional machine, “Acting as a data conveyor in an online system designed for hypersoializing,” according to MIT professor Sinan Aral. In an interview on Mr. Social Media, Mr. Aral stated that the sharp rise (fall) of GameStop’s stock is driven by individual investors sharing on social media.
“In ways we have never seen before, crowds can scale, collaborate and coordinate” Mr. Aral said, and that power can be used for good or ill. He analyzed 10 years of Twitter activity, and found that novelty travels far and fast, and that false news, which is more novel than truth, is shared more freely than facts.
This answer leads to the modern problem “Extravagance, “In which simulations and symbols assume a disagreement over what is true.
All investors speculate that there are yet unrealized values, Traditionally tied to financial fundamentals. For example, businessman Keith Gill (see above) Will testify today He believed that retailer GameStop could consolidate itself, justifying a higher share price. It was shared online and it convinced others. But as the crowd realized its power, the thesis became “Let’s stick it to hedge funds,” Mr. Aral said. This did not change the possibilities of the gametop, but luck was lost and lost depending on the power of the crowd to create a new reality.
To try and reduce the promise of a “new social era” Mr Arail said that insights from data science about the power of the “propaganda machine” should be applied to better implement policies. “We need a National Commission on Technology now.”
The professor also recommended that we all inspire our reflective powers to become more discerning influencers. Here is a puzzle to test your reflection: A bat and a ball cost $ 1.10. The bat costs one dollar more than the ball. How much does the ball cost? ()There is no clear answer.)
“It is something that is definitely here to stay. Whether it is to stay at these levels in the mid-term, we have to see. “
– Thomas Gottstein, CEO of Credit Suisse at SPACs. His firm’s advisor works for blank-check companies Strengthen your investment bank In its latest quarter.
Special: Russell Westbrook’s Bank Shot
NBA star Russell Westbrook, a digital chartered bank, is investing $ 63 million in Garo Bank, with DealBook valuing the company at about $ 1.3 billion. The money will help Varro grow – including brand awareness – and develop programs to promote financial literacy for people of color.
Help to increase access. When Mr. Westbrook, the point guard for the Washington Wizards, and his investment partners approached Garo with the idea, the bank, Recently raised over $ 240 million Before obtaining his bank charter, he was not active in search of more funds. But Garo CEO Colin Walsh said that he and Mr. Westbrook, who would serve as advisors to the bank, were “aligned with the mission’s point of view.” Mr. Westbrook said that his work with Varun would be “part of an economic revival for those who never had what they deserved.”
Shooting for an IPO Varo was founded in 2015 and is supported by the likes of Warburg Pincus and TPG. Mr Walsh said the bank was expected to go public “in the next few years” and it is anticipated that it will be cash-positive this year. Prospects for Fintech Regulation President Biden is on the air, but Mr Walsh said the company has “built really great relationships” with regulators, who appreciate the “authenticity” of its mission.
On that $ 500 million mistake
yesterday we Saga Citigroup’s erroneous transfer of $ 900 million to Revlon’s creditors, and why a judge ruled that a group refusing to return $ 500 million to the bank was allowed to hold it (pending appeal). The morality of the issue is horrifying, based on the flow of ideas received from readers.
In terms of ethics, Randy Cohen, the original moralist columnist for The Times magazine, weighed. Place of personAn interview show on public radio.
“When creditors received a larger payment than expected, they knew or could easily find out if it was sent by mistake: pick up the phone and ask. Since it was sent by mistake, the money should be returned. I do not know of any school of ethics that encourages exploitation of an honest error. Likewise, if one of the creditors in the Citigroup dispute stakes Allstate’s past, and Allstate leaves it to its wallet, Allstate must return the wallet, not the pocket. “
And here are some of your reactions:
“If it had been a small company, I would have been more sympathetic. The fact is that it is a large institution that should have a better system that forces me to govern: hard luck and mix it with Citigroup! “ – Audrey in Exeter, NH
Salute to the lenders who returned the money correctly. For those who kept it and acted on the error of the city, karma will take care of you. ” – Lisa in Arlington, Tex.
“If I accidentally sent an additional mortgage payment (or three) to Citi, I guarantee you that they won’t give it back.” – Patrick in Boston
“You can be an honest, ethical, commercially reasonable businessman, or you can keep money.” – Jeffrey in Newton, Mass.
Apollo Global Management named Jay Clayton, a former SEC commissioner, its independent director for internal investigations into Leon Black’s relationship with Jeffrey Epstein. ()WSJ)
Fabric store chain Joan filed to go public, a decade later taken private by investment firm Leonard Green. ()Bloomberg)
Politics and policy
A Facebook executive warned that the social network told Revenue that “it should never be built,” according to internal emails cited in a lawsuit. ()Foot)
The best of the rest
News you can use: How to buy genuine N95 mask online. ()NYT)
There is a new rap song about SPACs, and Bill Ekman is a fan. ()WSJ)
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