Tag: Vlad Tenev

Robinhood, Reddit CEOs to Testify Before Congress on GameStop (GME)

Mary Pat Campbell

Link: https://www.investopedia.com/robinhood-reddit-ceos-to-testify-in-congress-on-gamestop-gme-5112714

Excerpt:

The Committee on Financial Services of the United States House of Representatives has scheduled a hearing on “recent market volatility involving GameStop [Corporation (GME)] stock and other stocks.” The hearing will be held virtually, starting at 12 noon Eastern Time on Thursday, Feb. 18, 2021. Among those called to testify are Vladimir Tenev, CEO of online trading firm Robinhood Markets, Inc., and Steve Huffman, CEO and co-founder of social media community and online forum site Reddit.1

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In addition to singling out hedge funds for criticism, it is likely that Robinhood CEO Vladimir Tenev will face hostile questioning about his company’s actions in the GameStop affair. In particular, the committee memorandum notes that payment for order flow (PFOF) has been Robinhood’s chief source of revenue since its inception and that its decision to restrict trading in GameStop and other stocks may have been influenced by its business ties to investment firms that were caught in short squeezes on these stocks.4

The committee memorandum also notes: “In December 2020, the SEC charged Robinhood with making misstatements about the firm’s receipt of payment for order flow and for failing to comply with its duty to ensure that customer trades were executed on the best possible terms. Robinhood’s failure to satisfy its best execution obligations resulted in more than $34 million in aggregate customer losses. Robinhood was censured and agreed to pay $65 million to settle the action.”

Author(s): MARK KOLAKOWSKI

Publication Date: 17 February 2021

Publication Site: Investopedia

GameStop frenzy mastermind Roaring Kitty will testify in Congress on Thursday alongside the Reddit and Robinhood CEOs and two hedge fund managers after amateur traders pushed shares up 1,800% and cost Wall Street $19billion

Mary Pat Campbell

Link: https://www.dailymail.co.uk/news/article-9259527/YouTube-streamer-Roaring-Kitty-testify-GameStop-alongside-hedge-fund-managers.html?ito=social-twitter_dailymailus

Excerpt:

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 a 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 Representative Maxine Waters and includes Keith Gill, who also goes by Roaring Kitty, Robinhood Chief Executive Vlad Tenev, Citadel CEO Kenneth Griffin, Melvin CEO Gabriel Plotkin and Reddit CEO Steve Huffman.

Author(s): REUTERS and JOSH BOSWELL

Publication Date: 14 February 2021

Publication Site: Daily Mail UK

Robinhood’s Reckoning: Facing Life After GameStop

Mary Pat Campbell

Link: https://www.wsj.com/articles/robinhoods-reckoning-can-it-survive-the-gamestop-bubble-11612547759?mod=djemwhatsnews

Excerpt:

Many startup founders dream of the day their creation claims the top spot in Apple Inc.’s app store. For Vlad Tenev, Robinhood Markets Inc.’s chief executive, it was more like a nightmare.

Mr. Tenev and his co-founder, Baiju Bhatt, had set out eight years earlier to bring the stock market to a new class of investors. With engineers plucked from Facebook Inc. and other tech giants, they stripped down the trading experience and eliminated commissions, making buying a share of stock about as easy as posting a photo on Instagram.

It worked. During the pandemic, throngs of amateur investors—homebound, bored and flush with stimulus checks—opened Robinhood accounts to experience the market’s thrills. By the end of December, the firm had amassed about 20 million users, according to people close to it, and weeks later its app hit the top of download charts.

Author(s): Peter Rudegeair, Kirsten Grind and Maureen Farrell

Publication Date: 5 February 2021

Publication Site: Wall Street Journal