Here Are The Prepared Remarks For Tomorrow's "Game Stopped" Hearings

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by Tyler Durden
Wednesday, Feb 17, 2021 - 03:21 PM

On Thursday, the House Financial Services Committee will convene its planned hearing on the Gamestop trading fiasco, where the heads of Citadel, Robinhood, Reddit and Melvin Capital will come together to face off against Democrats like Committee Chairwoman Maxine Waters and AOC.

Ahead of that, some of the planned testimonials have been released.

Below, find remarks from Keith Gill, a Youtuber/Redditor best known as "RoaringKitty". In his testimony, the trader- who is facing a lawsuit related to his trading and online antics - insists that he still believes in his "fundamental case" for being long Gamestop, and insists he didn't try and pump the shares purely for his own profit.

In his testimony, Gill recounts how his family had an "incredibly difficult" 2020 after losing his sister to COVID.

"I did not solicit anyone to buy or sell the stock for my own profit. I did not belong to any groups trying to create movements in the stock price. I never had a financial relationship with any hedge fund. I had no information about GameStop except what was public. I did not know any  people inside the company, and I never spoke to any insider. As an individual investor, I use publicly available information to study the market and the value of specific companies."

He added that sharing the news with his family about his newfound financial success - that "we were now millionaires" - gave him tremendous joy.

In remarks from Melvin Capital chief Gabriel Plotkin,the hedge funder insists his firm learned a painful lesson from its GameStop short position, though he insisted it wasn't "bailed out".

He starts by noting that his firm had nothing to do with Robinhood's decision to pause trading in Gamestop, and that "it is very important to understand that absolutely none of Melvin’s short positions are part of any effort to artificially depress or manipulate downward the price of a stock."

"When our research suggests a company will not live up to expectations and its stock price is over-valued, we might “short” a stock  . Like with our long positions, our practice is to short a stock for the long term after extensive research. We also short stocks because when the markets go down, we have a duty to protect our investors’ capital. There are laws governing shorting stock, and of course we always follow them. In addition, it is very important to understand that absolutely none of Melvin’s short positions are part of any effort to artificially depress or manipulate downward the price of a stock. And nothing about our short position prevents a company from achieving its objectives."

Read the rest of his full remarks below:

Finally, Robinhead co-founder and CEO Vlad Tenev claims that the events of that day, when the price of Gamestop shares soared above $300, were extraordinary, and that the firm did what it did to its clients - cutting off orders in certain "meme stocks" due to - as he has insisted many times before - clearing-related requirements.

"Robinhood has changed the investing world for the better", Tenev insists, adding that his firm didn't favor hedge funds.

"What we experienced last month was extraordinary, and the trading limits we put in place on GameStop and other stocks were necessary to allow us to continue to meet the clearinghouse deposit requirements that we pay to support customer trading on our platform. We have since taken steps to raise $3.4 billion in additional capital to allow our customers to resume normal trading across Robinhood’s platform, including trading in the stocks we restricted on January 28. We look forward to continuing to serve our customers"

Read his remarks below:

But as we noted earlier, the biggest star/target in tomorrow's hearing is Citadel founder/billionaire Ken Griffin, whose testimony has not yet been released.