Melvin Capital, Citadel CEOs on short selling interest in GameStop

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Rep. Blaine Luetkemeyer (R-Mo.) asks trader and Redditor Keith Gill, Robinhood CEO Vlad Tenev, Citadel CEO Ken Griffin and Melvin Capital CEO Gabriel Plotkin questions at the House Committee on Financial Services hearing about the GameStop trading frenzy in late January. For access to live and exclusive video from CNBC subscribe to CNBC PRO: cnb.cx/2NGeIvi
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17 фев 2021

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Комментарии : 226

@jvm-tv 3 года назад

Just force all shorts to be reported daily rather than fortnightly. Problem solved.

@zimboiii9025 3 года назад

Why not in real time? It's the 21st century after all

@kx65andyx85rider 3 года назад

@@zimboiii9025 crypto baby

@yeski 3 года назад

@@kx65andyx85rider No that's just blockchain, not crypto

@tonygunk1886 3 года назад

Bingo!

@PretentiousStuff 3 года назад

fortnightly? What are you queen elizabeth's butler or something?

@brandonmatthews4112 3 года назад

Why is this not manipulating the market? “Because the rules allow it.”

@MarkSmithhhh 2 года назад

Jesus

@ludwigwladimirdorner3691 Год назад

Exactly

@L0CKTiTE 3 года назад

When hedge funds lose millions and average joes make money they want to make sure you don't make this kinda money ever again

@fivemeomedia 3 года назад

guy literally choked when he mentioned naked shorting

@FuzzyButtCheese Год назад

@@americanmutt7425 objection!! You can not mention the unmentionable!

@richardfirthucsb 3 года назад

But the Hedge funds should explain the 140% short

@oBazh 3 года назад

They did though. Bank loans business 10K, that business decides to lend one of its suppliers 4K. 10K is the original loan but now someone else also owes 4K in the chain. So essentially the loan of 10K is now 14K in total because even if the business pays back its 10K loan they could still have an outstanding debt of 4K with the supplier.

@cheesus8594 3 года назад

@@oBazh yeah but the business got that 4k from somewhere, so if we consider the whole market, no money was created. Am I wrong?

@oBazh 3 года назад

@@cheesus8594 correct, in theory no extra shares were created I believe. Person A borrowed 10 shares from his broker, he then lets 4 shares be lend out from his account to another investor in order to gain interest on it. Lots of big investors make a good return by lending their shares to others for a certain interest rate.

@michaelgrier 3 года назад

@@oBazh just add in the equivalent of fractional reserve and you can have infinite shares! Shares for everyone!

@jeremyed9507 3 года назад

Short interest is a percentage of float, not shares outstanding.

@fervent2896 3 года назад

The peasants are not allowed to hunt in the king's Forest, or something

@kellenwiley3849 3 года назад

CNBC: free market Citadel: yay U/DFV: yay CNBC: no not you

@mseker66 3 года назад

YES or NO? Vlad: I had the same haircut when I was a little boy in Bulgaria.

@txbre8758 3 года назад

Why do Vlad & Roaring Kitty look like they could be brothers 💀

@jcmb5708 3 года назад

Sperated at birth lol. One clearly chose the path of evil and the other the path of light.

@KnvgMoses 3 года назад

You are assuming it's not the same person. Ever seen them in the same room? Neither have I, I smell a conspiracy.

@kristopherjojimiyakusu9785 3 года назад

@@jcmb5708 lmfao, This comment

@kennystampon7721 3 года назад

Jesus and Satan were brothers

@mardasman428 3 года назад

Both need haircuts like most of us

@shoylu88 3 года назад

Please have knowledgeable people at the hearing.

@MrVocalist567 3 года назад

No. Political talking heads only.

@kossttamojaan 3 года назад

I'm still waiting for Plotkin and Griffin to answer the question 🤷🏽‍♂️

@DRIVECLUBistimelessPS4 3 года назад

You will find your answers if you go to Bulgaria

@pranavm8233 3 года назад

@@DRIVECLUBistimelessPS4 I was a young boy in Bulgaria

@fundanh1556 3 года назад

Griffin had 5 people in a room typing on a teleprompter. You can see his eyes looking up reading each time he answered.

@Jetstreamhustla 5 месяцев назад

I even saw this in the movie 😭

@skully2860 3 года назад

Does anyone else think the Citadel CEO looks like a psychopath? He has the most calm and controlled face, but inside he's thinking all sorts of things.

@sticklebacketienne 3 года назад

He’s just reading off a teleprompter with an assistant writing his responses

@Luke-ih1oc Месяц назад

@@sticklebacketienne Doesn't mean he's not a psychopath lol. There's a pretty well-established correlation between psychopathy and CEOs, and I think anyone who functions at that kind of a level in general (like a lot of high-level short sellers for example).

@ivanwon6370 3 года назад

Rep.Blaine just caught the hedgers with there pants down ... manipulation of the stock Perfect!!!!

@bobbyowsley4604 3 года назад

This is why many people think the market is a scam. DFV bought shares and call options, many of which expired worthless. But, because his thesis ended up being correct and he made millions, he "beat the system".

@hoodiegod6115 3 года назад

Can somebody explain to me how they were allowed to short gamestop 140 percent

@shoylu88 3 года назад

So why did the brokers need to stop GME trading, if the HF being shorts where within their rules? BS

@oBazh 3 года назад

Because Robinhood’s own trading house didn’t have sufficient collateral to put up at the clearing houses. Really don’t get it how some of you people have been consumed with anger for weeks but didn’t even bother to do miniscule research on the subject.

@1mocabulary 3 года назад

They stopped trading because it was gonna be too much for the shorts to cover, stop us from buying and the price falls especially when people were able to sell, not fair trading practices

@dankfranco2768 3 года назад

@@oBazh we're mad because Vlad repeatedly said its not a liquidity issue, when its clearly a liquidity issue

@oBazh 3 года назад

@@dankfranco2768 That is reasonable and is incompetent from RH. However I don’t get how some people still think RH stopped trading for a hedge fund that was short with which they had no business.

@apythonprogrammer7877 3 года назад

@@oBazh So why GameStop? Why other stocks, like CTRM? How did they choose which stocks to suspend? They only went after stocks that were mentioned heavily on WSB. How do they explain this, other than as retaliation?

@frankymacf 3 года назад

4:10 The chair should have allowed for further challenge on Griffin’s position that ‘legislative corrections’ are not required to prevent excessive/naked short selling. Was this not the main reason for the hearing in the first place? For Griffin’s position to hold up, then the logical conclusion is that we should expect prosecutions to follow. I’d like to have heard his opinion on that...

@safetyfirst3132 3 года назад

⬆ THIS 💯% "Was this not the main reason for the hearing in the first place?" I THOUGHT SO TOO

@remyb9937 3 года назад

"Short selling within the context of the rules" isn't the answer to the question. Manipulation is manipulation

@willard2729 3 года назад

Short selling is simply buy low sell high reversed to sell high buy low So according to your logic selling stock is manipulation?

@remyb9937 3 года назад

@@willard2729 no I'm repeating his answer. He answered the question with a response that didn't provide the complete context of what he was doing The full answer should have been: "Short selling in a predatory manner with the intent to unnaturaly drive down a distressed stock (that was struggling but wouldn't have necessarily collapsed otherwise) with massive capital outflux IS market manipulation - even if the laws allow for it because market makers and hedge funds paid lobbyists to look the other way." But go ahead and defend hegefunds that destroy small businesses and livelihoods to pocket cash. No problem Edit: also technically any stock market activity is manipulation of some kind - I'll play your little semantic game. Even selling stock. But the manipulation in question is predatory and harmful levels of the activity which those affluent sociopaths have access to and execute on a regular basis, whose goal has nothing to do with the actual classical intent of the stock market, which is to raise shareholder capital for businesses.

@callme3lroy 3 года назад

You thought 140% short is normal...?

@bilyonarelifestile2226 3 года назад

VLAD FOR PRISON HEAD CHEF

@ilikeshroomgals 3 года назад

Robinhood should change its name to the Sheriff of Nottingham.

@tlreclipse1126 3 года назад

NottySheriff 0_o

@unhappyiguana 2 года назад

How are 360 degree cameras not used for these types of interviews? Would be interesting to see the room full of lawyers reacting.

@arentube8123 3 года назад

So much talking out of both sides of their mouth and deceiving congress with their explanations. "We don't naked short because we always borrow stock when we short it" -> Yep, that's what short selling is, but unless you can gaurantee that you can actually have money to buy those shares in the future at a currently unknown risk, then you have unlimited potential losses. Anybody can borrow something. I can borrow things all day long, any idiot can do that. The trick is being able to fulfill the obligations you incur for doing the borrowing. That's where things are getting messed up.

@DirectedbyFC 10 месяцев назад

“The process of Naked Shorting was..” AAAAND CUT! That’s about all the time we have folks!

@bblack6868 3 года назад

“A unique situation “ bs.......so the first time it’s happened , it was discovered.....lol . It’s more like it’s been overlooked, or not fully understood by retailers. It’s more likely a very common practice that suddenly got exposed by these pesky retailers. A historical analysis of over-shorted stocks need to be done. .

@ianglenn2821 3 года назад

Plotkin and Griffin: "It wasn't us who over-shorted, we follow the rules, it must have been someone else!" That should be used as a reason to regulate and shine more light on who exactly "fails to deliver" and when...

@daraotl5187 3 года назад

I have no idea how congress works and all this yada yada but these representatives don't seem to be qualified enough for the job. They're asking questions but don't have the expertise to pursue some of the half-answers they get, and they get like 5 minutes each? There are gaping holes in the answers here but I don't know who's gonna really hold them accountable, this seems like a formality

@ludwigwladimirdorner3691 Год назад

As if the SEC would have stopped naked shorting 😂😂😂

@potatofrog7422 3 года назад

Important question comes out - your time is up

@chrishomann7597 3 года назад

Vlad looks like that King from Shrek. Damm I forgot the name

@tommyg199301 3 года назад

Lord Farquaad!

@samahirrao 3 года назад

@bianchimatt6746 3 года назад

"Naked shorting was largely curtailed by the SEC" this guy is slicker than snot

@tuduloo7799 3 года назад

Plotkin, he's still at his tricks to this day.

@kevinlin1992 3 года назад

The last 3 guys need to go to prison

@doomrot 3 года назад

I hope congress doesn't restrict Wallstreet from shorting over 100%. In fact, I encourage Wallstreet to short over 100% every chance they get.

@remyb9937 3 года назад

Much like the Pavlovian rat, repeatedly pushing the button but getting no reward, until they end up dead from starvation because they'd rather play the same old game they always have with people's money, than actually work for their keep

@allanmorehead3761 Год назад

Notice Ken Griffin blinks twice when he says naked shorts lol.

@benknudson1963 3 года назад

"The practice of naked shorting was largely curtailed by SEC mandate years ago". -Ken Griffin. LARGELY CURTAILED. Not eliminated.

@93DAIMOND 3 года назад

is it just me or it is hard telling the different between the kettie and the ceo

@alexm566 3 года назад

yeah similar hair style

@Jay-xr3sb 3 года назад

Like the responsible twin and the younger meme twin

@asrael_io 3 года назад

Can we all not talk about that awesome Garth Brooks songbook in the background of Rep. Blaine 🤣

@gmv9077 3 года назад

It's a difference between "the sistem didn't worked" and "the system didn't work in your favor".

@tonysteel1377 3 года назад

And yet they’re still naked shorting to-date.

@morrowindplayer8992 3 года назад

ah, the practice of naked shorting ended years ago? 200000+ FTDs on gamestop just in june. millions of FTDs of you look over the last 5 years... something big is comin...

@ippothedestroyer 3 года назад

Just shows you how broken the system truly is.

@InvestingAlex 3 года назад

Not really, i and lots of people are making annualized 30% yoy returns investing for the long term. Not sure what's wrong with you.

@ippothedestroyer 3 года назад

@@InvestingAlex When hedgefunds can pull the plug anytime thats a broken system. Not talking about returns.

@doctorbigsmiles 3 года назад

Pay no attention to the men behind the curtains

@electronicfarts5105 3 года назад

I just can't believe that Gamestop before the squeeze was shorted 135%! Its insane...

@kiwishizzle 3 года назад

Hey guys I just took a free online class in how to speak snake. I'll translate for you! "I'm not sure it's worth us delving into legislative corrections for a very unique situation..." means "We'd prefer if you allowed us to just change the rules on a daily bassssis to serve our interests, rather than making consssssistent rules that we have to follow even if it's not 100% convenient for us."

@tylerlee2612 3 года назад

the take away from this should be that no party pay exceed a short position over 100%. You shouldn't also be able to use margin to to short a stock either.

@willard2729 3 года назад

Shorting is margin like water is wet. Go find a kardashian thread if you don’t understand the issue

@michaelgrier 3 года назад

The problem is that if the shorts are actually virtual shares borrowed across market makers, you can't keep track of these things and you can get yourself into this territory. This is why it takes days to settle trades and why there are the "failure to deliver" reports from the FTC. Those things are amazing to read. In practice, nobody really knows who has what shares until someone calls their bluff. And if nobody has them, there's a small fine and they just have some more time to produce the shares. They all cover for each other. When I say small, it's not small like you or I would say small but when you're making billions, it's just a few points.

@k3nutube 3 года назад

The respondents don’t seem to be answering any of the questions....

@glendyfolwick7362 3 года назад

For law maker to ask the hedge funds CEO/manager: tell me why this is not manipulating the market by shorting 140% of the stock. From those two guys answers, they didn't say "yes we manipulated the system. What they actually mean is: the system allows us to do so, and we have been doing that. Is this obvious the law needs to change?

@TheyTookOurjobs13 3 года назад

4:58 when they mention Naked Shortening it gets muffly lol

@phillipt2934 3 года назад

Congressman do you know who I am? I am Anton Chigurh.

@Avocadotoastin 3 года назад

He is really a great speaker.

@joehart103 3 года назад

Behavior analysis plz when he says the words "naked short selling" at the end

@everydayexamples5933 3 года назад

hahahahahahahahaha you noticed that

@Luke-ih1oc Месяц назад

Someone thought they were on mute and hit the table lol

@photogol 3 года назад

Time to put the big hedge funds in the witness stand.

@sirduck4152 3 года назад

Mr. Griffin..what you reading there boyy 😂👀 can clearly see your eyes moving right to left haha..what a jokeee

@ummerfarooq5383 3 года назад

All he needs to do is explain that game hardware stocks are sold out everywhere, because they're being bought by speculating naked investors. Like a bunch of grown men taking all the dolls from the toy stores to whatever balmy reason.

@ohoyohummered 3 года назад

Is that Garth Brooks in the background?

@davidoff59 3 года назад

"Naked shorting was largely curtailed by sec mandate years ago" So it curtailed it, it didn't stop it. Interesting

@KennyW888 2 года назад

hmmm maybe its just the clip. but did anyone else notice. no one mentioned naked short selling except for kennyg. or was this because someone else already brought it up and hes just rebutting ?

@KokoFixed 3 года назад

gabby plucky didn't answer the question lol. He also has a slappable face

@tekila00985 3 года назад

Why is the Melvin guy next to a paper shredder? Also how bad does it look every part not representing the stock buying side is deflecting and wasting time like there is no tomorrow.

@blueststar4u 3 года назад

It looks like Congress is on the side of the people(retail) that is... Until they realize how BAD the situation really is.

@jerrysmith7881 2 года назад

We need legislation on politicians insider trading it’s no issue when ppl in Washington collude to inside trading but if the small guy does it it’s major problems

@Ealdorman_of_Mercia 3 года назад

why is the melvin guy sitting next to the big printer.

@joshfoster9832 3 года назад

Citadel securities was $50bn net short on stocks, many of them squeeze stocks, at New year. it's likely now increased due to market value increasing. Could be hundreds of billions by now, all in Jon existent shares, or 'synthetics'.

@josephturner4348 3 года назад

I had to come back and watch again before AMC and GME short squeeze

@6-4--1 3 года назад

ขอบคุณ

@andrebohanon8798 3 года назад

Thanks for the comment for crypto advice and guidelines.

@FishHeadBiologist 2 года назад

7 months later this "unique situation" as Griffin describes it is communality of big hedge in every day market trading..

@feriafyre 3 года назад

I'm going to short 140% of my taxes.

@lafondawilliams 3 года назад

these guys these are not the laws you are looking for ahahaha,

@richardfirthucsb 3 года назад

Question is too long and weird.

@gearzone2611 3 года назад

Saying naked shorts looking like these clowns chokes a bundle of dollars.

@drock529ful 3 года назад

I liked Vlad better when he used to do stand up comedy using the name Demetri Martin

@layingblacklines 3 года назад

04:18 Griffin: "I wouldn't say it's worth us delving into legislative corrections (against shorting over 100%)". Rather than just a unique circumstance you could say this is a perfect example of why it needs to be regulated. Following true market forces, the stock would have gone to infinity. Which would obviously bankrupt everyone except shareholders, who would then have a balance of $infinity. Completely absurd situation which they luckily managed to avoid (through nefarious means). But the fact it just almost happened should give grounds to addressing it. Otherwise what is to stop it happening again in a month's time? More and more it looks like these market makers might as well be replaced by indexing algorithms. I mean arbitration is almost a thing of the past. The only time they can be more efficient than the market is when they directly manipulate it. But that is dangerous as we've just seen.

@78musiksphere 3 года назад

Gabe Plotkin trades on inside information. Hold him accountable.

@gebsus 3 года назад

Shorts haven't closed. We are going to uncharted regions of space.

@texasmade2684 3 года назад

Vlad Tenev and Keith Gill are the same person and you aint gonna convince me other wise

@jbird78 3 года назад

Lol yeah have Robinhood and Citadel's intellects to help write laws.

@tlam9458 3 года назад

Where the f*** is katie porter 😭😭😭

@jayjong6941 2 года назад

The art of saying nothing by saying alot of bs

@SUET1967 2 года назад

F' Ing Lawyers

@gmv9077 3 года назад

I bet he didn't aspected In one day to speak for cnbc when he choose that nickname

@ummerfarooq5383 3 года назад

His name is Vlad... Tenev...

@bradchristmas5104 3 года назад

Please explain the short, isn't 140% market manipulation? Both 1% trash "but we followed all rules and regulations, so no".

@user-pu2eb9tq5n 3 года назад

They’re out numbered and scared

@CA-mb4jb 3 года назад

I think perhaps government needs to stay out of this.

@HotBoii91 3 года назад

Then citadel will jus us their money to overpower us again???

@Kimmyj30 3 года назад

It is manipulation, and they better come better than this. They need to be held accountable, if that's the rule, it needs to change now... Although, I think they're lying.

@topnotch2493rb Год назад

How or u a market maker and a short seller that’s unfair to retail just controlling the market and price manipulation they or lieing and a lot of the rules or in there favor nothing is built for retail

@WLyons9856 3 года назад

The system 100% worked. Volatility is the only thing promised in public securities.

@Leatherdog01 3 года назад

soon

@youtubescroller350 3 года назад

I buy a lot of stocks while naked and I don't see a problem with it

@GonzoGolf 3 года назад

Vlad tenev is not a melvin ceo label your videos better

@robertperham3571 3 года назад

Does Vlad get coaching from Zuckerberg when it comes to answering questions

@kennystampon7721 3 года назад

Coward need a teleprompter! Guilty guilty lock him up! Look at his track record! He will keep paying the fines, just cost of doing business to him

@MR.GREINER 3 года назад

Buy AMC and hold for the squeeze🦍

@hermanhinks6186 3 года назад

Lol you can see the lie on his face

@thig2148 2 года назад

naked shorts, yeah

@WheelerRickRambles 3 года назад

Liar liar pants on fire!

@jett-rampartflyer2852 3 года назад

I think Keith Gill may very well be a vampire. And I think that Ken Griffin dude's mom was an alcoholic. At the same time that he was a growing fetus.