Name: Robinhood CEO admits company did not respond perfectly to GameStop trading mania
Brand: axios.com
SKU: axios-com-100
Availability: OnlineOnly

critic

Robinhood CEO admits company did not respond perfectly to GameStop trading mania

preview

Robinhood CEO Vlad Tenev apologized at a House hearing Thursday for the confusion caused by his platform's decision to restrict trading of certain "meme stocks," while admitting he did not handle the situation perfectly.Yes, but: Tenev later admitted the company made mistakes, but could not spell out what those mistakes were — before Congress moved on to the next question.Key exchange:Why it matters: The wild stretch of Reddit-fueled trading last month has resulted in intense scrutiny of the power of platforms like Robinhood, short-selling hedge funds and the stock market's plumbing.The big picture: Regulators are scrutinizing what happened during the GameStop saga and whether there was wrongdoing.Between the lines: Jennifer Schulp, director of Financial Regulation Studies at the , said she's seen "very little that would meet a test for [market] manipulation," but that doesn't mean the SEC shouldn't take a deeper look.What to watch: Waters, who chairs the committee, says there will be "probably two more" hearings related to the GameStop saga.The bottom line: The highly anticipated hearing revealed few new details about last month's "meme stock" phenomenon that shocked the world.Players central to the GameStop market bonanza will call on Congress to shorten the time required for stock trades to settle, according to released ahead of their appearances at a Congressional hearing on Thursday.Why it matters: A typically obscure part of stock trading is set to be among the issues at the forefront — as Robinhood and others look to deflect the anger that stemmed from the Reddit-fueled stock frenzy.There's little consensus about what went wrong, if anything, during the trading mania that drove a group of "meme stocks" to meteoric heights — and those tensions could animate today's GameStop-centered Congressional hearing.Why it matters: What went wrong and who's to blame — short-sellers, Robinhood, Reddit daytraders, etc. — depends on whom you ask. Any of the witnesses set to appear could be targeted, and there's not much clarity about what direction Congress might go in response.Keith Patrick Gill, known on YouTube and Twitter as Roaring Kitty, released his ahead of testimony before the House Financial Services Committee on Wednesday about his role in the surge of GameStop's stock price.The big picture: Gill will join the CEOs of Reddit, Robinhood, Citadel and Melvin Capital at Wednesday's hearing. The plans to "examine the recent activity around GameStop (GME) stock and other impacted stocks with a focus on short selling, online trading platforms, gamification and their systemic impact on our capital markets and retail investors," per a statement by Rep. Maxine Waters (D-Calif.), chair of the committee.

Robinhood CEO Vlad Tenev apologized at a House hearing Thursday for the confusion caused by his platform's decision to restrict trading of certain "meme stocks," while admitting he did not handle the situation perfectly.Yes, but: Tenev later admitted the company made mistakes, but could not spell out what those mistakes were — before Congress moved on to the next question.Key exchange:Why it matters: The wild stretch of Reddit-fueled trading last month has resulted in intense scrutiny of the power of platforms like Robinhood, short-selling hedge funds and the stock market's plumbing.The big...

public

Courtenay Brown

Smart Brevity worthy of people's time, attention and trust. Subscribe to our newsletters: https://bit.ly/3hMCmVn

axios.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Robinhood CEO admits company did not respond perfectly to GameStop trading mania

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS