President Joe Biden’s recent Treasury Secretary pick Janet Yellen has personal interest in the recent GameStop saga between retail investors and the investing app Robinhood.
On Thursday, Robinhood illegally barred investors from buying and selling GameStop stock after retail investors bought up GameStop stock, screwing over billion dollar hedge funds and pushing the price of GameStop over $400 a share.
News also broke that Robinhood was actually illegally selling the shares belonging to these investors as well.
Investors are furious at Robinhood and want the Biden Administration to take action however it appears that this may not happen considering Yellen, Biden’s Treasury Secretary pick, was paid over $800,000 by Citadel, Robinhood’s biggest customer.
Check out what the Daily Caller reported:
Citadel, a hedge fund founded by Ken Griffin, a major GOP donor, paid Yellen $810,000 to speak at several events from October 2019 to October 2020, according to Yellen’s filings with the Office of Government Ethics.
The Chicago-based hedge fund paid Yellen $292,500 for a speech on Oct. 17, 2019, $180,000 for one on Dec. 3, 2019, and $337,500 to speak at a series of webinars held from Oct. 9-27, 2020.
Citadel is invested heavily in Melvin Capital, a hedge fund that was reportedly on the brink of bankruptcy this week due to a surge in GameStop share prices.
Reddit users on a page called “wallstreetbets” encouraged purchases of GameStop shares in order to exploit Melvin Capital’s short position on the company. A buying spree from retail investors forced Melvin to cover its short position by buying shares of GameStop at elevated prices.
Citadel and another firm, 72Point, invested $2.75 billion in Melvin this week after it lost 30% of its capital, according to The Wall Street Journal.
White House press secretary Jen Psaki said Wednesday that Yellen, who was confirmed by the Senate on Monday, is “monitoring the situation.”
What are your thoughts? Let us know in the comments below!