8.2 C
New York
Wednesday, August 10, 2022
HomeCryptoCurrencyUS Treasurer Received Nearly $ 1 Million From Firm Involved In GameStop...

US Treasurer Received Nearly $ 1 Million From Firm Involved In GameStop Case

The head of the United States Department of the Treasury, Janet Yellen, could be in a potential conflict of interest with the companies Melvin Capital, Citadel and Robinhood, having received payments for the talks given at events organized by Citadel.

This company, linked to Melvin Capital, would have paid Yellen a total amount of USD 810,000 to speak at each of its three events during one year, which took place between October 2019 and October 2020.

Yellen received USD 292,500 for a speech on November 17, 2019; another USD 180 thousand for a talk on December 3, 2019 and USD 337,000 for lecturing in a series of webinars held from October 9 to 7, 2020, as shown by records with the Treasury Department.

Citadel also spends thousands of dollars each year since 2008 to Congress and the Treasury Department for lobbying, according to information reported by the United States Senate.

Despite payments Yellen allegedly received for delivering these talks, there is no evidence to suggest that the Treasurer has acted in favor of either party thus far. However, the potential conflict of interest has already aroused suspicion on social media.

Relationship between Melvin Capital, Citadel and Robinhood

The firm Melvin Capital Management LP, which invests mainly in technology and consumption, lost 30% of its capital in the first three weeks of this year due to short positions that went wrong, including GameStop. This is because Reddit users made widespread bets that the video game company would increase its value.

This US fund, which has 12,500 million in assets under management in January 2021, according to The Wall Street Journal, was rescued by Citadel and another firm, 72 Point, with a capital injection of USD 2.75 billion.

Citadel LLC is an asset fund based in Chicago, Illinois, founded in 1990 by Ken Griffin. The company invests capital through multiple strategies. Its main activities include the sale of shares and options on assets.

Ensures an article published by Daily Caller that Citadel also pays RobinHood for your business data. So when RobinHood blocked the purchase, some accused Citadel of blocking the exchanges in order to rescue Melvin Capital.

Nick Allen, Vice President Loadegg and Popdog Trading adds, “So Citadel is an investor in Melvin Capital, which is one of the biggest losers from the GME short shrinkage. And a large portion of Robinhood’s revenue comes from Citadel, who buy its commercial data stream. ”

Robinhood co-founder Vlav Tened said that“ this decision was not made in favor of none of the market makers we routed or another market participant.

According to The Week magazine, the founder of Citadel also created Citadel Securities, a firm that partnered with RobinHood to execute purchase orders .

GameStop Stock Price Rising Monitoring

White House press secretary Jen Psaki recently said that President Joe Biden and Secretary of the Treasury Janet Yellen “were monitoring the situation ”regarding the boom in shares of GameStop Corp and other companies as a result of base trading powered by / r / WallStreetBets on Reddit.

“ Our economic team co, including Secretary Yellen and others, is monitoring the situation. However, it is a good reminder that the stock market is not the only measure of the health of our economy, ”Psaki told the Bloomberg agency.

valor mercado acciones wall street valor mercado acciones wall street valor mercado acciones wall street
GameStop shares have soared 1.745% in recent weeks. Source: Wikimedia.

In recent weeks, GameStop shares soared 1,745% thanks to the coordinated buying action by WallStreetBets, despite the fact that experts had predicted that this company, which had been struggling to survive in 2019, was doomed.

Secretary of the Treasury shows more favorable stance on bitcoin

Yellen, who was also the first woman to chair the Federal Reserve under former President Barack Obama, has recently shown a more favorable stance on bitcoin, as published by CriptoNoticias.

In a hearing before the Senate Finance Committee, Janet Yellen, assured that plans to encourage the use of cryptocurrencies for legitimate activities.

Also, you mentioned that bitc oin and other cryptocurrencies have the potential to improve global transactions .

Follow World Weekly News on

Sandra Loyd
Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

Leave a Reply

Must Read