If you’ve been keeping up with the GameStop Rebellion, news has been breaking fast and furious.
I wanted to break down some of the very important relationships here so you could see behind why some of this was happening and why some are reacting the way they are, and show the tie-in to Janet Yellen and the Biden team.
Melvin Capital is the hedge fund that got stomped by the little guys when they decided to buy GameStop and drive the price up because of Melvin Capitol’s short position on the company.
According to the Wall Street Journal, Melvin Capital was propped up by Citadel and another firm, 72Point with a $2.75 billion infusion after it lost 30% of its capital.
Citadel also pays Robinhood for their trade data.
So when Robinhood blocking buying, some accused Citadel of blocking trades in order to bail out Melvin Capitol.
So Citadel is an investor in Melvin Capital, who is set to be the biggest loser in the GME short squeeze: https://t.co/mbQb40ZIDz
And a huge portion of Robinhood's revenue comes from Citadel who purchases trade flow data: https://t.co/Dl18m6fCJU
This is a bad look.
— Nick Allen (@NickAllen) January 28, 2021
There’s another big connection that is just coming out which might explain Jen Psaki’s comment of how Janet Yellen and the Biden team were “monitoring” the situation. We asked why should they be monitoring free market trade?
Well, here’s Treasury Secretary Janet Yellen’s connection to the mix.
According to the Daily Caller, Yellen was paid $810,000 to speak at three events for Citadel in one year between October 2019 and October 2020. She was given $292,500 for a speech on Oct. 17, 2019, $180,000 for another on Dec. 3, 2019, and $337,500 to speak at a series of webinars held from Oct. 9-27, 2020. Citadel spends thousands lobbying Congress and the Treasury Department every year since 2008.
Reddit guy: I made $1000 on GameStop
Yellen: I made $337,500 talking at a webinar for Citadel https://t.co/nf5gHJ18o3
— Chuck Ross (@ChuckRossDC) January 28, 2021
So why is she “monitoring” the situation again? Why should she have any involvement?
Now there’s no suggestion that she’s done anything wrong in this situation, but when we’re seeing vast sums of money being paid to someone as a “speaking fee” should this not be concerning about the influence that then gives companies like Citadel in just such a situation as is now breaking?
Great question from Nandita Bose of Reuters to Psaki if Treasury Sec. Janet Yellen would recuse herself from discussions about #RobinHood seeing has how she's given paid speeches to the hedge fund Citadel. Psaki dodges b/c Yellen is "one of the world renowned experts on markets" pic.twitter.com/3paPVMv846
— Curtis Houck (@CurtisHouck) January 28, 2021
Who does she think buys this stuff?
That of course doesn’t answer the question of whether she would recuse herself. It doesn’t explain what the “monitoring” Yellen is doing consists of. Is she really telling us that people just want to pay Yellen that kind of money because she’s an “expert?” What is her connection to Citadel and how does she explain it? Put her out there to answer the question herself, if Psaki isn’t able to answer. Circle back with an actual response rather than bull cookie spin.
Nothing to see here, right?