>> WELCOME BACK TO BETWEEN
BELLS EVERYONE,
THE UP FOR OVER GAMESTOP STOCK
HAS INVOLVED ONLINE TRADING
APPS RETAIL INVESTORS
INTERNET FORUMS AND SOME OF THE
BIGGEST PLAYERS ON
WALL STREET. NOW THE HOUSE
FINANCIAL SERVICES COMMITTEE
PLANS TO LOOK INTO WHAT
HAPPENED DURING A HEARING SET
FOR THURSDAY THE CEO'S OF
REDDIT ROBIN HOOD CITADEL AND
MELVIN COY CAPITAL ARE ALL SET
TO BE THERE ALL SET TO TESTIFY
I EVEN A REDDIT USER WILL BE
CALLED TO THE STAND AND JOINING
US NOW TO DISCUSS MORE ON THE
UPCOMING HEARING IS ZACHARY
WARM BROUGHT FINANCIAL SERVICES
REPORTER FOR POLITICO
SO ZACH THANKS SO MUCH FOR
JOINING US, LET'S START WITH
THE APP IT SEEMS TO BE AT THE
CENTER. HER OF ALL OF THIS
ROBIN HOOD OF COURSE, SO WHAT
ARE YOU EXPECTING TO HEAR FROM
ROBIN HOOD CEO.
>> SURE THANK YOU FOR HAVING ME
ON TO TALK ABOUT SO THIS
IS REAL AND THEN KIND AN
OVERDUE MOMENT FOR ROBIN YOU
KNOW AT THIS
EXPLOSIVE GROWTH LAST ADD
MILLIONS OF NEW USERS TO ARE
STARTING TO TRADE STOCKS AND SO
YOU HAD ALL THESE KIND OF
QUESTIONS BUBBLING
UP ABOUT YOU KNOW HOW IS IT
SERVING THOSE CUSTOMERS OTHER
POTENTIAL RISKS AND THEN THE
GAMESTOP SITUATION JUST KIND OF
EXPLODED THAT
WHOLE ISSUE. SO I THINK FOR
GAMESTOP IN PARTICULAR YOU'RE
GOING TO HAVE QUESTIONS ABOUT
YOU KNOW FIRST OF ALL WHY DID
YOU ALL TRADING. YOU KNOW THAT
WAS THE BIG CONTROVERSY AND IN
GAMESTOP HAS TRIED TO EXPLAIN
THAT HER ROBBERS TRIED TO
EXPLAIN THAT AS YOU KNOW THEY
HAVE THESE BILLIONS OF DOLLARS
WORTH OF CLEARING OBLIGATIONS,
THE ABBOTT BUT LAWMAKERS LOT OF
QUESTIONS. THERE'S GET THEY'RE
GOING TO QUESTIONS ABOUT GAME
OF VACATION AND WEATHER THERE,
YOU KNOW CREATING RISKS AND
INCENTIVIZING CUSTOMERS TO TAKE
SHORT TERM. YOU KNOW THAT'S ON
THEIR BEST INTEREST
AND THEN OBVIOUSLY ITS
RELATIONSHIP WITH THAT FUNDS
AND SAID ALL.
>> YEAH AND ROBIN HOOD AS YOU
SORT OF ALLUDED ADMITTED THAT
THEY HAD STOPPED USERS FROM
BUYING GAMESTOP GAMESTOP STOCK
ANOTHER RED SOX DUE TO A
LIQUIDITY ISSUE SO DO YOU THINK
THIS IS GOING TO BE UP PROBLEM
ON
MOVING FORWARD EVEN PAST THIS
HEARING FOR CUSTOMERS.
>> I THINK THERE WILL
SOME PRESSURE ON ROBINHOOD TO
BE MORE
ABOUT YOU KNOW HOW IT TREATS
ITS CUSTOMERS IN GENERAL, SO
YOU YOU KNOW WE'RE DISCLOSURES
ABOUT WHEN IT'S DOING IS
TRADING HALTS
AND WHY AND ALSO JUST MORE
DISCLOSURE AROUND YOU KNOW HOW
MUCH IT COST CUSTOMERS TO TRADE
ON THE PLATFORM AND IT SAYS
IT'S 0 YOU COMMISSION BUT YOU
KNOW WHAT REALLY GOES INTO
THAT.
>> YEAH AND HOW DO YOU THINK
THAT ROBIN HOOD SIDE OF THE
STORY IS GOING TO MATCH UP WITH
SOME OF
THE OTHER. PEOPLE THAT WE'RE
GOING TO HEAR FROM DURING THIS
HEARING. WE'RE ALSO HEARING
FROM THE CEOS OF CITADEL AND
MELVIN CAPITAL.
>> CITADEL, YOU KNOW
IF YOU'RE KIND OF FOLLOWING
FINANCE CLOSELY FOR THE LAST
FEW YEARS YOU KNOW CITADEL.
>> YOU KNOW KEN GRIFFIN YOU
KNOW BEING.
>> YOU KNOW IN THE WITNESS
CHAIR IS REALLY FASCINATING
BECAUSE YOU KNOW HE IS YOU KNOW
ONE OF THE WEALTHIEST PEOPLE IN
THE COUNTRY. HE YOU KNOW HE'S A
MAJOR GOP DONOR. IS ONE OF
THOSE POWERFUL PEOPLE ON WALL
STREET AND I LAWMAKERS ARE
GOING TO BE REALLY EAGER TO
HEAR MORE ABOUT HIS BUSINESS
MODEL WHICH WITH REGARD TO
ROBIN HOOD. YOU KNOW ON ONE
SIDE YOU HAVE CITADEL
SECURITIES THAT'S PAYING ROBIN
HOOD.
YOU KNOW IN $2 TO ACTUALLY
EXECUTE ITS CUSTOMERS TRADES
AND SO LAWMAKERS ARE GOING TO
WONDER YOU KNOW WHY IS THAT
WHAT IS SITTING DOWN GETTING
OUT OF THE DEAL YOU KNOW
IS THIS BILLION GOOD DEAL FOR
ROBERT ITS CUSTOMERS YOU HAVE
NO IDEA THAT THEIR TRADES ARE
BEING SENT. YOU KNOW SAID TO
BE THE KIND OF PARTY AND THEN
YOU HAVE THE CITADEL HEDGE FUND
QUESTION. YOU
KNOW BECAUSE KEN GRIFFIN'S
HEDGE FUND BAILED OUT BUILD YOU
KNOW MIGHT BE DISPUTED ACTUALLY
BY BY MELVIN BUT YOU KNOW
2 BILLION DOLLAR INVESTMENT
WHEN IT WAS REALLY SUFFERING
BECAUSE IT HAD A SHORT ON
GAMESTOP STOCK SO THE QUESTIONS
ABOUT YOU KNOW WHAT THE
POTENTIAL CONFLICTS OF INTEREST
ARE IN PLAY THERE.
>> WE ALSO WILL BE HEARING FROM
A REDDIT USER NAMED TE CALLES
IS SET
TO TESTIFY. WHAT DO YOU THINK
WE MIGHT HEAR FROM THAT
WITNESS.
>> SO THAT COULD BE THE
A FASCINATING WITNESS ON THERE
BECAUSE YOU DON'T
TYPICALLY HEAR. YOU KNOW COME
FROM INDIVIDUAL INVESTORS OR
TRADERS AT THESE KIND OF
HIGH-PROFILE
EXECUTIVE HEARINGS. I THINK
HE'LL FACE QUESTIONS ABOUT YOU
KNOW WHAT WAS HIS POSITION IN
GAMESTOP WIDE WHY DID HE TAKE A
LONG POSITION IN GAMESTOP AND
YOU KNOW WHAT DID HE DO TO
POTENTIALLY.
YOU KNOW CAUSES TRADING FRENZY
AND WERE THERE ANY CONCERNS
ABOUT MARKET MANIPULATION THERE
AND I THINK HE'S ALREADY FACING
SOME SCRUTINY ON THAT LAST
POINT.
>> AND ZACHARY JUST ABOUT 30
SECONDS LEFT WITH YOU I DO WANT
TO KNOW WITH THIS TREE WE'VE
SEEN YOU KNOW BIG TECH HEARINGS
BEFORE OR AND SORT OF A SLOW
POTATOES
LEADING 10 ANY ACTUAL
RAMIFICATIONS FOR A LOT OF
THOSE COMPANIES SO IN THIS CASE
WITH THE REDDIT STOCKS IN THIS
WHOLE SAGA. DO YOU THINK THERE
WILL BE
ANY RAMIFICATIONS OR ONLINE
TRADING. APPS LIKE ROBINHOOD OR
FOR ANY OF THE DIFFERENT
PARTIES THAT HAVE BEEN INVOLVED
IN THIS.
>> YEAH I THINK THERE CERTAINLY
WILL BE AND IT MAY NOT COME IN
THE FORM OF NEW LEGISLATION
JUST GIVEN. YOU KNOW IT'S HARD
FOR CONGRESS TO GET ANYTHING
DONE EVEN UNDER YOU KNOW ONE
PARTY BUT YOU KNOW YOU AN
INCOMING SEC CHAIRMAN
GARY GENSLER HU YOU KNOW IS
KIND OF WELL KNOWN FOR KIND OF
BEING OUR
CHARGING REGULATOR AND IN THIS
LASTLY BE A FRONT BURNER ISSUE
FOR HIM IN YOU'RE GOING TO WANT
TO HE'S GOING TO BE UNDER
POLITICAL PRESSURE TO SHOW THAT
HE'S YOU KNOW I THINK