Robinhood CEO Vlad Tenev said in prepared congressional testimony that his firm didn’t improperly aid hedge funds and that it restricted customers’
“Any allegation that Robinhood acted to help hedge funds or other special interests to the detriment of our customers is absolutely false and market-distorting rhetoric,” he said in testimony released Wednesday by the House Financial Services Committee. “Trading limits we put in place on GameStop and other stocks were necessary to allow us to continue to meet the clearinghouse deposit requirements.”
The
Gabe Plotkin, a hedge fund manager whose firm took heavy losses during last month’s Reddit-fueled trading, plans to tell Congress that he was “humbled” by the experience.
“Melvin Capital played absolutely no role” in the decisions of trading platforms to limit the buying and selling of GameStop shares, Plotkin plans to say, according to his written testimony. “In fact, Melvin closed out all of its positions in GameStop days before platforms put those limitations in place.”
— Additional reporting by Daniel Flatley
