>> well, thanks for having me, jon, and it is good to see my good friend brad sherman.appreciate the democratization of trading, and more people participating and trading, and that is a good thing, but we want to understand why they had a capitalization problem. in the midst of the gamestop day, and amc, robinhood was clearly undercapitalized that caused a problem in the clearing firms, and that is a key issue to look at, because it affected the transactions by consumers, their customers. >> congressman sherman, vi questions of whether this is a democratization of something, because this is more about trading, it seems to me, than it is about investing, and part of the reason perhaps why robinhood did not have the money in reserve is because it is not charging people, and it is not trying to make a lot of money in different ways, so are you comfortable with the robinhood structure and what that encouraging the retail investors to do? >> well, i am not a fan of the day trading, because it is bad for the ratings, but i believe that the investments should be boring, and i

if you use the subcommittee on capital markets, which i believe is shared by brad sherman, -- chaired by brad sherman, you can get multiple rounds of questions and have a much more constructive dialogue on capitol hill. our chair has elected not to do that on high-profile matters. tom: that is brilliant. it is like the subcommittee we have here were you and lisa tell me to shut up. jonathan: it is a smaller room, a smaller setting and seems to be more direct. i think that his mother congressma -- i think that is what the congressman is alluding to. i am a journalist. what we do sometimes, we like the theater, too. i think we have to acknowledge the usefulness of them. we have to make these better. i know somebody financial professionals who watch that yesterday because they thought it would be a bit of fun. it should be serious stuff. tom: it is political posturing. my basic issue is well-meaning politicians are trying to be experts on every topic. they are not. i want to listen to the experts. lisa: i would argue there is a financial literacy aspect that is more crucial to make sure

the faa has resisted, but congressman brad sherman has introduced to a bill to force its hand. >> thes bill per helicopter, roughly $60,000 pales compared to the cost of what happens when a helicopter crashes. >> reporter: he is hoping that after years of talking about the need for more safety equipment on helicopters, the loss of an icon may finally lead to action. it was foggy out here again this morning, but it's not clear in a warning system would have made a difference in this case because once you start flying in terrain like this, it can ping off all the mountainsides as well as the ground to the point where pilots will consider it a nuisance and turn it down whatever comes out of the tomorrow's hearing will have a huge impact on the litany of he company against air traffi lawsuits including one against the helicopter company of air traffic controllers saying they were negligent. >> jane, why not have data or voice recorders or both? >> reporter: well, in brad sherman's bill they would be mandated, and they are already mandated on air ambulances it's not clear -- the data recor

>> reporter: well, in brad sherman's bill, they would be mandated and they are already mandated on airlances it's not clear -- the data recorder in this case would have helped but the voice recorder would not. that only records conversations between crew this was only a one pilot job. >> jane wells live for us. thank you. >>> a new report out today on california's deadliest wildfire ever it paints a sobering picture of what the rest of the state could face in the near future. scientists looked at the 2018 campfire to figure out how it exploded the inferno north of sacramento killed 85 people, destroyed 18,000 homes and buildings you may remember the fire for the damage it in flikted on this one town, the town of paradise which became front page news today's report found they were relatively prepared for a big fire and still got destroyed cnbc's scott cohn live at boulder creek tonight. scott, what else did we learn from this review >> reporter: well, shep, this was really learning about better dealing with what's become a fact of life in california and california case in point, where i

democrat brad sherman wanted to know if the average trader on robinhood was treated the same as larger same as larger wall street wavere— street players. he gets the better deal? _ street players. he gets the better deal? one _ street players. he gets the better deal? one that - street players. he gets the i better deal? one that comes from a broker— better deal? one that comes from a broker who _ better deal? one that comes from a broker who is - better deal? one that comes from a broker who is being . better deal? one that comes i from a broker who is being paid for order— from a broker who is being paid for order flow and why not? can you testify— for order flow and why not? can you testify that, on balance, there — you testify that, on balance, there is_ you testify that, on balance, there is no difference, assuming the same size of the order? — assuming the same size of the order? ., , ., order? so, as i said earlier, the size _ order? so, as i said earlier, the size of— order? so, as i said earlier, the size of the _ the size of the order is only one factor-— one factor. you are

we wanted to play the beginning where congressman brad sherman, the chair of investor protect subcommittee at cital securities. market makers insure a trade between a traders and a brokerage such as robinhood. we have policy analyst alexis goldstein. she developed trading platforms when she was at morgan stanley they gave to hedge funds for free in order to get business back from the hedge funds. good to have you, alexis. what is your gut reaction? is there anything specifically that popped out you during this entire hearing so far? >> i think first of all the ceo of robinhood has had a couple of places where he didn't have very good answers. there were a number of members of congress to ask you truly plan what happened, why was it that robinhood froze purchasing of certain stocks such as gamestop in late january and in my opinion he didn't give anymore information than they previously said on the blog. he sorted talked about needing to provide capital to clearinghouses is sort of way all different brokerages participate in what are called clearinghouses to manage risk. if one goes bankrup

the one thing that no one wants to say here, maxine waters an congressman brad sherman did a great job they said are hedge funds getting special deals? they keep avoiding the question. ken griffin actually answered the age-old question that size does matter. the little guy gets treated worse than the big guy but the bottom bottom line robinhood is free around like facebook is freeh. facebook takes your data and makes money from it. robinhood takes your data to sell it to citadel to computer and sell in front of you. the shorts had market advantage. why goldman sachs makes money 52 out of 63 trading days. short selling is wall street's dirty little secret they don't want the little guys in on it. charles: in your opinion what will happen? kabuki theater dies down. something dies down, another hearing in two months, we're back to square one, are small investor on their own still? will they do anything to even make it look like they're trying to level the playing field? >> well, charles, i can tell you this, i know how much you care about our country. i know how much you care about indivi

california congressman and a member of the house financial services and foreign affairs committees, brad sherman. congressman, thank you for taking a moment out for us on this saturday afternoon. we really appreciate your time. >> thank you. i want to qualify one thing, i'm not at cpac. >> that's true, and it's quiet, we can hear you fine. >> i want to start with the biden administration and strikes in syria. there have been a number of democratic colleagues that have come out against the strikes that were, ever course, targeting specifically iranian-backed militia efforts. these were intended know the to create a bunch much casualties, but impact infrastructure. they said they wanted to send a message. at least representative out one of your claeks says there's no authorization without imminent threat and congress authorization. and many of your colleagues share this. >> i think the vast majority of our caucus supported what president biden did, first as a legal matter. we did authorize the use of force in iraq, i was there for that vote, others were not. when you under-respond to an attack, wh

. >> reporter: and, neil, there also was a exchange between congressman brad sherman and the citadeln whether or not they treat orders from a company like robinhood differently than they may treat an order from a company like fidelity, really trying to pin him down on a yes or no in response to that question. he didn't get it, and he told the citadel ceo, you're wasting my time, and if you wanted to filibuster, you should have run for the senate. so there's been a lot of back and forth. but, neil, one answer -- or one question that did get answered was from that user, roaring kitty, who did make millions of dollars off of gamestop, he told the committee today that he is not a cat, but he also stands by his bullish position on gamestop even today. neil? neil: all right. so yes or no, are you going out of your mind following this? [laughter] >> no, i'm not. it's entertaining. it's better when you have a lot of fireworks and a lot of back and forth than nothing exciting. neil: all right. you answer a question, unlike any of those witnesses. hillary, great coverage. look forward to more