it's not that the sec told robinhood to stop trading.hey were worried about the clients and their money and whatnot. joe: we hear this ferocious stock market rally that has never really taken a breather since last spring. sometimes you get hiccups eventually. on your bingo card, did you have the volatility coming because the stock went up too much? sonali: what is funny about this, yes. four days here, the ceos were not looking back just at 2000 and 1999. they were saying this reminds them of every history book they've ever read. there have been gamestop's in the past before. so the question is, was robinhood's executives ready for a moment like this? caroline: i'm not sure i had it on my bingo card that we would start to see a twitter fight break out between the founder of one of the biggest hedge funds versus portnoy of barstool. from your perspective, what are the losses here? everyone seems to be trying to feel the shoe should be on the other foot and we would have seen a closure of these sorts of trading opportunities. sonali: that

this is why robinhood was formed robinhood, and i don't speak for the company.on't have any inside information. i did not speak to vlad but did see the hit andrew did last night. that was a good get. congratulations on that. when they pitched me this idea at antonio's nut house in palo alto before the product was launched, vlad said to me we went to get millennials to trade stocks and i said these are the same people who are totally commitment phobic, they're on their mom and dad's netflix accounts they don't buy cars. they take ubers. how are you going to get them to do that? what's the opportunity there he said, well, what if we do -- what if we do get them to trade? what would that look like? okay, great. i like that idea it's a new market. i said retail is gone. there's no retail investors. i like the way you're talking. great, keep going. what's the business model? we're going to let them trade for free i'm in this is a great idea this is what my life is. the same pitch as uber people are going to give up their cars and use an app. these crazy ideas work >>

i'm not picking on robinhood necessarily.swab limchwabb lt trades including gm and starbucks. >> i think it goes to some particular problems, robinhood may be having. remember, they clear their own -- they self-clear essentially. they go through the dttc ultimately but self-clear and caused problems. they had to put up a significant amount of money this week. so they may have very particular problems associated with their business model. >> we'll see a lot of stuff just a couple of names but looking at gamestop, bob, thank you, buddy, have a good friday and a good weekend. >> have a good weekend. >> all right see what i did dothere. we're talking to public enemy number one the notorious short seller now one of them is questioning the nature of his own game what could this future hold for this small but important corner of the marketplace and how will the game stop game stop? we're going to break it down on this specialdion eti of f""fast money" continues. fast money" continues. nice game. your crosscourt shots are killing me.

he's the robinhood ceo speaking to emily chang.s week, it's the davos agenda, leaders meeting virtually. we will bring you a piece of the action. we'll be speaking to mark carney, the u.s. special envoy. you don't want to miss that interview. before we go to break, i want to bring you some breaking news. this is coming about the eu spat with astrazeneca. she is calling on astrazeneca to fulfill the vaccine contract. throughout the morning, she's been speaking to local german press. we also heard her talking about the fact that she's talking about, as well, that she wants transparency and planning security on vaccines. we'll have a lot more on this story throughout the morning. coming up, permission to export. the eu is set to tighten rules for companies shipping vaccines outside the block. that's coming up next. this is bloomberg. ♪ >> we are going to have a recovery, but it's going to be an even recovery. >> of course it will have a direct impact on the forecast, and it will be very difficult. >> you're going to get a roaring 20's

people supposedly through robinhood, and twitter but probably through robinhood, are pushing back athem. it is kind of like david throwing rocks at goliath. but the real problem for us, back at the fcc which will come back to we don't know who david is. david could be bigger than the sharks. he could be a huge head fund -- hedge fund that is well-funded. nobody knows because there is no disclosure. the question is, who is fighting with whom? emily: you suspect some of this is institutional money? it is a lot of money piling into the stocks. i know there are some of these retail investors, folks holding on and could make millions right now, but just want to prove a point. do you think there is more going on here? >> there really could be going on. the shorts are probably big institutional players, hedge funds, they are sophisticate in traders. they do this kind of thing all of the time. usually the company complains, they yell, they are unhappy understandably so. but they don't really do anything. maybe file a lawsuit that goes no place. and then that is the end of it. that is not hap

that just hasn't happened. >> who made the call to robinhood? >> was there a call to robinhood?know. >> that's all i'm saying >> robinhood woke up and made the decision themselves to halt the tickers. >> i don't know but i'm not claiming to. >> okay. i didn't claim to either >> you did you just said that the authorities are doing all of these things >> go back to the tape, i did not say that i said people are not allowed to trade. i don't know what call was made but i don't think it came from robinhood. i think it's a fair question and i think it's the question given that you're the journalist you should be asking, not me >> exactly and i will ask but i'm not claiming to know like you just did. >> i am not claiming to know i'm claiming to ask and i'm asking you, did you call -- >> well, let's ask the question. let's do that. that's great >> you can ask robinhood the question today >> i don't have robinhood on i have you on. i'm analyzing what you are saying >> so you haven't done your job today and emailed robinhood and asked them why they stopped -- >> if i haven't done my jo y

robinhood allowing people to buy.ew capital. joining us is tom sossnoff you were bought from british firm ig trade. tom, good to see you did you have an understanding of what was happening yesterday beyond the conspiracy theories were you thinking, wow, there's liquidity problems at robinhood causing them >> thanks, by the way. i would say the whole industry had their hands full yesterday so it wasn't like we were following robinhood that closely. i would say no we had our hands full like every other brokerage firm with a massive amount of buy in, email messaging and things like that i don't think we follow robinhood that closely, no. >> have we crossed the rubicon it's here to stay? >> we were kind of at the forefront going back 20 years of this whole engagement of the retail investor and empowering retail investors it's kind of been our mission for two decades. it took a lot of help. it was the robinhoods of the world and firms like that that bought it to the forefront i think, yeah, it is here to stay what you saw

robinhood. liz: fox business alert. want to see the real pop stock power of a single twitter hash tag? look at what happens when it's attached to the world's richest man and his name. bitcoin getting its mojo back at this hour after elon musk put #bitcoin into his twitter bio. some market watchers are concerned the tesla ceo might be moving the market a little too much with his twitter statements after today's bitcoin bonanza. what do i mean? it's up to about $34,471. don't forget the reaction he got to his game stunk tweet from earlier in the week in support of the reddit rebels. that got gamestop spiking. we do have bitcoin up at its high today, more than 15%. bitcoin is leading a crypto charge over the past 52 weeks that now has trading platform coin base looking to burst out on to the public scene but in true disruptor fashion, the crypto firm is choosing to forego a traditional ipo and 2020 spac craze, not even going that route, for a direct listing instead, which means it won't be issuing any new shares or raising

night with the ceo of robinhood. what they are going to be able to do to continue to focus on making sure theystay in business, that they have enough solvency they took in $1 billion. but if you are in dreessen har wits, one the key investors there, you have just got to be making sure that their risk mitigation policiese are correct they have access to what they need in terms of the clearing houses and they understand what is going on with the customer balances when the stocks go from 335 to 120 in 20 minutes, it's kind of hard to figure out exactly how much you have at risk. and so we have got to at least warn people, it's possible, and this is from people who run these businesses, other businesses, not robinhood, it is possible that they have to stop people from buying these stocks again. it's possible that that could go into effect if robinhood feels like it is crossing certain thresholds. >> yeah. and certainly just last night, i mean, we also know that, to your point about that company trying to protect and save

francine: robinhood raises over $1es. its chief executive says it is to protect its financial position. the eu on the move with coronavirus vaccines, demanding astrazeneca honor its contact. and lockdowns as a new chief executive because cost during her first year, leaving the retailer. we will speak to the company's cfo. good morning, everyone. welcome to "bloomberg surveillance." yes, it is friday, a pretty heavy day on the markets, most of us glued to our screens well into the night. this is what markets are doing today, the focus firmly on what is happening between hedge funds and these retail investors, robinhood in the mix, i made certain criticism from u.s. lawmakers. the other thing i am looking at is silver. extremely interesting, because we saw exactly what we could have seen a couple of weeks ago when it comes to stock games. silver sing an unprecedented game after day traders contact the metal as the short squeeze market. we look at the vaccines rollout and a little bit of pressure. now, another day on wall st

robinhood trades to anybody, everybody wants those traits, the reality robinhood as we reported yesterdayo settle the trades and that is what's crazy about the situation. there is tons and tons of conspiracy theories that healed the run-up in gamestop and all the shares. you have easy access to trading in very low interest rates and easy financing from the fed that is a toxic boom but how do you regulate that, you let people get crushed for taking an outside risk, there is no other way to regulate the stuff. neil: i did think rush limbaugh was a little nutty to like it to the generate six event quieting free speech and all that a bridge too far. rebecca walser let me ask you about this. there does seem to be a sense building in the online community that there's a double standard protection for the hedge funds, that short stocks, no such scrutiny over the positions or what's behind it but a lot of scrutiny over these average joe's in joanne's who are profiting quite handsomely countering those votes. >> i think to charlie's point obviously it was a matter of not having the cash that is req

robinhood now getting hit with a couple of lawsuits. is this the end are just the beginning of something? fontaine: it's just the beginning. this will go on for quite some time. you have two elements operating. you have the madness of the crowds or the wisdom of the crowds being fueled by the reddit boards and others. that will probably not go away. you have the regulatory and legal apps as well. one lawsuit filed already today against robinhood for shutting down those accounts. washington is involved, and on top of all that, you have the wall street titans who are not shy about making it known that the -- that this is their casino and they are the only ones that get to gamble. emily: i love the analogy. thank you so much for breaking it down. coming up, we're looking at how wall street bets on reddit and discourse could change trading. later, the power of the individual trade. this is bloomberg. ♪ [ sigh ] not gonna happen. that's it. i'm calling kohler about their walk-in bath. my name is ken. how may i help you? hi, i'm calling about

when i saw what robinhood was doing, ironically robinhood's take from the rich and give to the poor evenugh they do the exact opposite, i was stunned. i think it's criminal. i think there has to be an investigation. i think people have to go to jail. whether that actually happens, i don't know, but i've never been more convinced about market manipulation and the people, the hedge funds controlling the i ge than today. i mean, just wake up and say, hey, you can't trade these stocks anymore. you could only sell them. we're going to intentionally crash the market in these stocks and everyone who has it, tough, you're going to lose a ton of money but we're going to save the rich people and the hedge funds. shocking! like in 20 years of me doing barstool, i'm not exaggerating, it's the most shocked i've been and maybe i shouldn't be, but, you know, when you have aoc and donald trump jr. vote on the same side of an issue, you know something is dramatically wrong! >> tucker: this seems like a betrayal of the basic promise of american public markets which is their transparency. that's why you've

haidi: ok, thank you for the latest on a robinhood. we will be waiting to get more details on the senate hearing that will take place. you can get more information about robinhood on your terminals. this is bloomberg. ♪ wanna lose weight and be healthier? it's time for aerotrainer. a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time. it allows for over 20 exercises. do the aerotrainer super crunch, push ups, aero squat. it inflates in 30 seconds. aerotrainer is tested to support over 500 pounds. lose weight, look great, and be healthy. go to aerotrainer.com. that's a-e-r-o trainer.com. shery: hong kong chief executive carrie lam says the future is bright even amid reports that some operations are moving to tokyo. she spoke with bloomberg about what the government is doing to get the economy back on track and to keep hong kong attractive as a global financial sector. carrie lam: lately, there have been s

protesters around the country, they're real mad at robinhood.kind of makes people scared about -- [inaudible] >> whoo! stuart: yeah, it's a firestorm of protests when they stopped trading, stopped you able to buy gamestop. lots more reaction coming up, plus barstool's dave portnoy. he says robin and some hedge funds -- hedge funders should be in prison. lock 'em up, he says. he'll be with us next hour. ♪ ♪ you're the cutest jailbird i ever did see ♪♪ ♪♪ ♪♪ ♪♪ stuart: update on the markets, we're don 212 on the dow industrials, down 84 on the nasdaq. over at the white house, spokesperson jen psaki has feeled three -- fielded three, maybe four questions about gamestop. she did not answer directly about what the government would do about it, if anything. she simply said government agencies are monitoring the situation, the sec is looking at it. and we did, indeed, get a warning from the sec earlier today. they're worried about -- be careful, they say, of illegal, manipulative activity. that calmed down the volatility in the casino stocks just a lit

it's not just about the little guys in robinhood. the big boys are reacting as well. >> that's right. these people on the trading platforms who are just getting into the whole exercise of trading shares and trading options are learning the intricacies of how the market works as they are, you know, getting into the financial market. and it's also giving the investing public new information that they probably did not know. it's very much like donald trump's presidency where everybody became very familiar with the basics of civics, where they never had before. now that the financial markets are doing what they are doing, i think people are starting to learn how these markets really work. francine: marty, i love the fact that you brought it back to politics. it was quite surprising to see, or at least people took stock of aoc and ted cruz kind of for the first time ever being on the same page. what does that mean for regulators? what does it mean for, you know, a bitcoin? to hedge funds stop doing short positions -- do hedge funds stop d

i want to bring in the ceo of robinhood, vlad tenev is with us right now.te you joining us on a day where there are so many questions. and as melissa just said, there are frankly as you know a lot of angry customers out there and a lot of questions about what took place and the decisions that you made to limit so many of your customers' ability to buy stocks like gamestop. questions about whether you have a liquidity problem, whether you're trying to protect them from themselves, whether citadel did this explain what happened today. >> thank you for having me on the show again, andrew so what happened today was as you pointed out, we had to make a very difficult decision. it's been a challenging day. we made the decision in the morning to limit the buying of about 13 securities on our platform so to be clear, customers could still sell those securities if they had positions in them and they could also trade in the thousands of other securities on our platform so it was a difficult decision and that's what we had to do as part of normal operations. >> but ex

where does this go is it about regulating firms like robinhood more closely? maybe making them put up more capital? about finding market manipulation what are they after here >> you are right, and there is also a class action suit that has been filed against robinhood as well. clearly not a good time to be going public to your point, where do they go from here? i have been talking to people about what needs to take place in terms of regulation, what are people looking for, what are people calling for part of it could be related to margin and leverage that's allowed on their platforms in order to ensure that they don't need to seek this kind of rescue financing in the future in order to make sure that they have a fortress of a balance sheet to, you know, kind of minimize the potential risk to the system so that's one thing to consider although i don't know if it is going to take place. it all depends on how these things really work out over the next weeks and months and maybe even years. >> kate is there any sign of what the next set of targets might be for the

it's important for robinhood to not shut down the small guy.ors some leeway today. we will see how long that will last. this is a story fundamentally of speech, not just what's happening in the market. jackie: yeah, almost reminds me of the battle that we have been dealing with twitter, for example. who has the right to control everything here? james, the wall street journal editorial board out with a new op-ed this morning as politicians on both sides of the aisle are calling on regulators to investigation the frenzy and the board says that platforms like robinhood have every right to police their platforms. they also note that regulators should be utilized to investigate fraud or even full on manipulations even placing some of the blame on the fed. the burden writing this, quote, the central bank may be feeding the asset frenzy as it holds interest rates near zero and crushes the long bond year curve so it doesn't send accurate price signals, as investor search for yields, they have moved to commodities, real estate, foreign currencies and st

has the fiscal share come for robinhood and forced to raise cab tall and too many stocks on gamestop and does it put the entire company at risk >>> and bill de blasio says that the companies need to do this to ramp up the vaccine rollup, and we will talk about that with the mayor and when we can ramp it up. and so markets are down in a big way. dom chu and the smartboard of stocks to watch, and it up one and down the next and that is what it seems this week the new normal. >> the new normal for this week is right because there is continuing chatter among the trading desks of the gross down or the taking down of the risk on the short and the long side for many folks out there, and something to keep an eye on, but what it is leading to is the dow down 657 points, and the lows down 667 and that happened in the last 57 minutes here, and the s&p 500 is down 82 points and down 91 was the session lows and again just in the last 10, 15 minutes or so, and the nasdaq k composite is down 2.13. and bit technology is part of the nasdaq and the s and the p and the dow, but apple down 5% almost. mi

a lot of them use the app robinhood. the honor of gamestop. gamestop is a struggling mall retailer that sells video games, comic books and other things. the stock has been assailed by short-sellers, these hedge fund investors that can go in and borrow a stock and that it will fall and put pressure on the stock. kind of a feeding wolf pack mentality. these guys meanwhile want to defend the alamo. they say we can ruin their lives. we can make their mischief painful and difficult by banding together and buying gamestop stock. not for any fundamental reason. not that anybody is driving to the multibyte videogames of this company is out of the woods in any measure. long story short, when that happened in these people engage in that self-fulfilling prophecy, the stock is up 15 fold in less than a month. that really hurt the short-sellers out there. they are getting the sensitive vindication and the little man won over the wall street fatcats in the country is fascinated. host: for those of us who read peter lynch's "beating the street" in the -- and

robinhood, t.d.yesterday to limit activity on these stocks, only allowing traders who were hoping to capitalize on the gains with two options -- hold or sell. however, hedge funds were still able to make moves on these stocks, and this caused a dip in shares for the high-flying stocks. gamestop dropped 44%, amc 57%, and other targets of the wall street bets reddit forum -- nokia, blackberry, bed, bath & beyond, express, and tootsie roll -- all posted losses, despite being up for the week. this move by the trading platforms ignited widespread criticism, and a group of individual investors even filed a class action complaint against robin hood yesterday, claiming that the platform deprived their customers of the ability to use their service as well as potential gains from trading for no legitimate reason. robinhood has since needed to emergency fund-raise $1 billion from existing investors to support activity and will allow limited buys on the reddit stocks today. yes, you just heard me say that correc

people have to understand robinhood., takes a certain degree of capital. you have to have, you have capital requirements. and robinhood just can't keep up with it at this point. so a lot of -- liz: schwab can't either though? >> i don't know schwab. it's possible. i mean, we're talking tremendous -- i mean, think about it this way, we're talking about gamestop a penny stock a few months ago that is now trading wherever it's trading. and, by the way, it's down 200 points today. it reached a high of 500, and it came back down. that's massive amounts of volume and -- liz: they can't trade. they want to buy. >> well, it's moving somewhere, maybe it's not moving on robinhood, but there's a huge options trade here as well. so remember, this is -- some this has to do with the plumbing of robinhood, of all these different places. it's less about a conspiracy than it is about the reality of what's going on here which is a never before seen, never seen before occurrence involving, like, about ten stocks. i mean, it's pretty amazin

story, robinhood is at the center of that story. they tell us access was blocked in the interest of protection. hong kong leader carrie lam at war with the u.s. -- she says the bank is a fundamental part of the business landscape. we get all those top stories this hour, a pleasure to have you on the show. the markets are looking like this, making our way midway through the session across north of asia we are -- not enough to not just hire for the week. we are still on track for a weekly loss, but first of course as been a good run, pay attention to money rates in china especially overnight rates. bottom of your screen, you probably see that. highest level since 2015. they are also moving in the same direction essentially indicating -- did we get our rates hiked without them telling us? money markets are certainly moving along those lines. you have jakarta up about 1% and this hour we will get others coming online after a correction yesterday. a lot of data coming out, you have taiwan and hong kong gdp out of the weekend, we will loo

they have lawsuits ready to file against robinhood.em taken for everything that they have. i think it's extremely wrong what they've done. you know, citadel -- apparently this isn't confirmed, but they were given information ahead of time that robinhood was going to be closing trading on these, quote, unquote, meme stocks and double down on their short position and if that's true, everyone at citadel and everyone in charge of robinhood deserves to be in prison right now >> wow if you had a best guess, how does this end? >> i don't know. i think that's anyone's guess at this point i don't see this movement going away anytime soon. i don't see any possible way in which the sec could regulate this this is free speech. these are people giving public stock tips it's not going away. you have millions of americans with $1,000 or so sitting in their bank account, and they see this, and they want to join the movement and they're joining it robinhood just after a ton of backlash reenabled trading of gamestop, and it's already up almost 100% afte

meantime, you had a robinhood trader filing a class action late in new york and chicago accusing robinhood of market manipulation. when investors can't buy in to the stock as with the case on robinhood today, the stock goes down. they win while the little guy loses out. neil? >> neil: all right. susan li, thanks very much. this might not sound like much and pardon me if i step out and help out what what is happening in english. there's people betting that the stocks will go lower, a lot of big hedge funds do that. big names under duress because they lost billions on this. sites have come up, readit and robinhood and others that allow investors to counter what those betting on a short position or tanking stocks will do. this battle royale is continued as all of these retail investors storm in to counter what the shorts are doing. it's a mess. but back to the argument over who should be regulated. the individual investors that profited going after the big boys or the big boys right now who seem to be winning today. or is that really the case? let's go to charlie gasparino. where are with in

robinhood couldn't -- had to stop trading not because it doesn't want-- robinhood makes money when there'souldn't handle the volume, it needed more money, more capital to settle the trades. neil: and it got more money. by the way it got more money. at people that says it's only the big guy that gets help. robinhood had a million dollar line to make it more available for customers. if you're against the lines set up to help the institutions, well, you better include robinhood in them. >> right, and neil, hedge funds that short stocks are under investigation all the time. they'll always go under investigation, they're always under investigation. this is a really, a stupid meme that the notion that it's a populous, that they're screwing little guys. they're not. you can make the case, should there be restrictions how much someone can buy in leverage and margins and using the robinhood account. that's a whole other argument. neil: rebecca, let me ask you about that. i hate this when they make these things political when they're not on the right or left. just stop it and look at overwhelmed sys

i want to summarize, a $1 billion request by robinhood.lso the utilization of two letters of credit reported, jp morgan and goldman sachs. "new york times" has that -- $600 million. that is a lot of money last 12 moneys -- 12 hours. emily wilkins joins us. of course emily wilkins and i know when the balance of power, it is a most-watched show. she and i will be doing balance of power at 12 noon. i have been studying. there are 400 35 representatives. i am on top. emily: wait to go, tom. tom: i want to talk about that moment -- in the zeitgeist this morning the democrats are at the tipping point where they go it alone on fiscal stimulus. is that a valid statement? emily: absolutely. if you look at congressional democrats, the ones in the house, the senate, they are getting ready to start the foundation of going at it alone. president biden is not ready to throw in the towel. he has been making calls to republican lawmakers, rob portman, trying to figure out if there is some middle ground. he wants to make sure this first major bill has repu

robinhood shutting down the ability to buy stocks.his feels like the very thing these people are railing against. jonathan: the reddit co-founder and robinhood co-founder joining bloomberg in the last 24 hours. good morning. here are your markets this morning. we pulled back up on my desk or by 8 -- johnson & johnson coming out with their late stage finical trial results. the headline number is 66% of moderate to severe cases prevented by the sexy. -- by the vaccine. it is effective at stopping severe disease. 100% of hospitalizations and deaths. the headline number may not be in line with other clinical trials in the past month, but the number of severity of deaths and hospitalizations is helpful because it is a one-shot regime. tom: make note of the 10 year yield, -31 on negative spx. we will kill three birds with one stone and talk with bloomberg intelligence -- damien at bloomberg intelligence about the tone we have seen this week with equity gyrations. we will talk about the experience with short squeezes. you are the best i know

i guess the question is, does citadel not want to execute the trade for robinhood, or is robinhood theoing it? i don't have that answer yet. i'm sure that will eventually all come out. interesting stuff, a lot of market action. volatility still trading right around 30. tune in later this afternoon for commodities edge and my conversation with the chevron technology ventures president, coming up at 1:00 p.m. ♪ >> from bloomberg world headquarters in new york, welcome to "balance of power," where the world of politics meets the world of business. i'm david westin. r day with reddit a gamestop short-sellers at the top of the news, even as the market rebounds from a down day yesterday. we are joined by the coanchor of "what did you." thank you -- "what did humans." -- "what did you miss? " brian: it open lower and bounced around all day long. there was volatility trading not only on gamestop, but a lot of the other means stocks -- ansi, blackberry, american airlines getting bumped up as well. what is interesting now is this has become a much bigger story than8 the price 8 -- a bigger story

the reason we did it was because robinhood is a brokerage firm.have lots of financial requirements there was no liquidity problem, and to be clear. this was done preemptively, so we did this proactively, and thousands of other securities remain tradeable on the platform, customers that held these positions were able to sell them, and we're doing what we can to allow buying and to remove these restrictions in the morning. >>> robinhood is raising $1 billion from the existing enves tors, a -- investors. spilling over into the global markets, asia closing lower overnight, and the major european markets seeing a lot of red this morning our julianna tatelbaum joins us from our london newsroom, and what are you seeing over there. >>> the retail frenzy, whether this is a fascinating story to watch or if it has actual implications and potential risks for financial market stability we are seeing the benchmark trade down by 1%, very evenly spread losses across sectors, and across regions, the auto sector, one of the key bright points this morning. otherwise

with respect to robinhood halting trading, robinhood has capital requirements that are set by financialgulators. and to the extent that we saw extraordinary volatility in all these stocks -- gamestop, amc entertainment, bed, bath, and beyond, and a host of others, if robinhood doesn't have adequate capital to cover those trades or any losses in client accounts that may accrue, they have to raise capital. so they halted trading and limited trading in a wide variety of stocks until they, one, raised $1 billion from their original investors overnight and drew down credit lines from some of their banks that i think totaled in excess of $200 million. so i know people were upset about this, but it was better for robinhood to do that and get itself together financially than run the risk of becoming another casualty in all this, and in fact, running the risk of going out of business. that didn't happen, but it is possible at some future date, if they're so upside down that they're forced then to be taken over by someone else. >> to be clear, this is similar to the way banks have to be insured f

one such platform is the app robinhood. so much i has taken steps to shore up its financial position. it has raised more than $1 billion from its current investors and credit lines from banks. there wa a short suspension of trading in terms of the short-selling war and that caused and engineers from investors and they are are saying they are trying to protect wall street. currently gain stock holders are only allowed to buy a single share. it expanded its list of restricted stocks. we spoke to a u.s.-based analyst and explained how platforms are set to profit from this market manipulation. >> robinhood was the number one app on the app store. but what the irony of the whole thing is that robinhood portrays themselves as the small investor tool. however, how robinhood, 100% of their revenue comes from them selling their data to wall street. it's not t trader or small investor, it's actually wall reet. when people think it's free, it'sot free. there is a complicated interest there and this episode is going to shed light on th

the ceo of robinhood joins me live along with the creator of wall street bets. is it confusing? yes. but it certainly can be made understandable. i will lay it out for you. then we are going to take it up with both sides. >>> first, the terror threat that is hovering over washington is not a theory, it's not hypothetical. we've had two arrests near the capitol in the last 36 hours. andrew mccabe on the race to stop another deadly assault next. as a retired weatherman, i like things i can predict. that's why i chose an aarp medicare supplement insurance plan from unitedhealthcare. it's the kind of plan with predictable out-of-pocket costs. plus the plan i chose has a low to zero percent chance of copays. it's a sunny day for me. -honey you're doing it again. -i'll stop. the only medicare supplement plans with the aarp name. medicare supplement plans have no networks and no referrals so you can take charge. have no networks and no referrals dana-farber cancer institute discovered the pd-l1 pathway. pd-l1. they changed how the world fights cancer. blocking the pd-l1 protein, lets t

robinhood is a broker-dealer.n to make sure their investors have information they need on their platform. particularly doing options trading, particularly a very sophisticated strategy. it is good robinhood opened up democratized investing for retail investors. they have to understand what they're getting into. our laws are written to be buyer beware. you need to understand what you're doing making short and long-term investment decisions. that is on the individual. i happen to think finra's rules on options trading, disclosure, that kind of thing for investors are sufficient. in my view i don't think you should stop investing though. i think that something we'll look into when we have the hearing. connell: okay. so the rules are sufficient, but that last part, so you will look into what specifically would you like to tackle, if the rules were -- >> well, where they have, the broker-dealer has said you can't buy or sell a stock to an individual investor. that is something that merits explanation when we have the h

the move also angered robinhood users of rigging the the app. the fcc said they will review actions like robinhood that made disadvantage investors or otherwise inhibit their ability to trade but also adding the sec will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity. an investigation that elizabeth warren said she asked for. she treated casino-like swings of gamestop reflect wild levels of speculation that don't help gamestop workers or customers and could lead to market instability. the stock market sold off into the afternoon. robinhood customers were only allowed to buy one share and five options contract. that's not free market capitalism at work there, neil. >> john: yeah, i guess better than nothing. but it's getting weird. susan li, thanks. very hard work today all around the clock following this development this asp. so much we don't know. this much we knew, the markets give and take right now. so all of these people are holding on to multimillion dollar fortunes in some cases given t

he, robinhood, get off your phone! he, robinhood, get off your hone!our hone! ., , ., phone! robinhood and his not so merry men- _ phone! robinhood and his not so merry men. this _ phone! robinhood and his not so merry men. this relatively - merry men. this relatively small—scale protest took place outside the headquarters of the no— fee trading firm that many have been using to buy and sell shares in game stop. they had imposed trading limits which have led to drop in share price. have led to drop in share rice, ,, ., , have led to drop in share rice. ,, .,, , have led to drop in share rice. ,, , ., price. --gamestop. they are called robin _ price. --gamestop. they are called robin hood _ called robin hood so it is kind of ironic they are helping the big guys. gamestop seems an unlikely vehicle _ big guys. gamestop seems an unlikely vehicle for _ big guys. gamestop seems an unlikely vehicle for what, - unlikely vehicle for what, depicting as a david versus goliath battle between big money and small investors. following tips from a forum on the social

the adults enter the casino and demand robinhood put their money in motion.nd friday pretrade, $1 billion. robinhood, they take advantage of credit lines from jp morgan and goldman sachs, an additional 500 million, give or take. gamestop, gamestop from 500 to 100 to 193 to a clear and present $400 per share. the gentlelady from the bronx, the gentleman from texas, aoc and ted are on the same page. does las vegas treat their customers this way? good morning, everyone. "bloomberg surveillance." i am tom keene at the casino in new york, francine lacqua at the casino in london. aoc and ted in agreement. we

i think that robinhood -- anti-waiver agreements. i think robinhood is in trouble.e not likely to see much of that going on right now until we have some permanency and staff at the sec. once that happens, i would hope they take a good, hard look at robinhood or competitors to robinhood to make sure we are dealing with in a sensible fashion. vonnie: thank you for joining us today. that is professor james cox of duke university school of law. we will discuss china relations in the biden era with carla hills . this is bloomberg. ♪ vonnie: amid this week's retail trading frenzy, world leaders took part in a virtual world economic forum in both -- in both. -- in davos. there was an address full of subtext. for more on the future of u.s.-china relations, we welcome ambassador carla hills, chairman and ceo of hills and company and a former u.s. trade investor under george w. bush. ambassador, how does president biden reset relations with china? ambassador hills: he has said he will be cooperative in some areas, competitive in some areas, and where there is confrontation, h

even if that brokerage is robinhood, robinhood works with citadel securities which pays for their order they are backed by a company which has lost about 20% this month through these issues. you are still working with wall street if you are playing in the stock market. with that said, who gets regulated at the end of the day? is it the hedge funds that are shorting, that is who they wanted regulation against? or it is at the retail treating gets regulated against create more investor protections? that would be bound to create a a lot of outrage. vonnie: very fascinating thing happened this morning. we had on twitter, aoc coming out and making her statement here about robinhood. ted cruz saying he agreed. which was interesting enough in itself until after that, aoc went after ted cruz on twitter and basically said, you tried to murder me. therefore you don't get a say on this. now we are hearing from the punch bowl news organization that mchenry of north carolina is calling for a hearing on retail investing. where does this go and how does robinhood suddenly become the story, and the bro

do due to the raid robinhood allowing restricted buying of the securities tomorrow.gamestop and other stocks to protect the firm and its millions of users. and now you know the news. of this -- what is it today? i think it's thursday today. january the 28th, 2021 i'm shepard smith. i made a business out of my passion. i mean, who doesn't love obsessing over network security? all our techs are pros. they know exactly which parking lots have the strongest signal. i just don't have the bandwidth for more business. seriously, i don't have the bandwidth. glitchy video calls with regional offices? yeah, that's my thing. with at&t business, you do the things you love. our people and network will help do the things you don't. let's take care of business. at&t. or: in this episode of "american greed"... high-flying attorney michael avenatti. he literally just exploded on the scene. joining us now is... michael avenatti, the lawyer representing stormy daniels. narrator: avenatti gains fame waging a lurid legal battle against donald trump, on behalf of an adult film star. hi, e

out there just as robinhood does seek a line of credit they say they have enough liquidity but a? around that. but nonetheless users are furious. >> too intentionally crater a stock at the expense of all your customers, that is criminal in my mind they had to know this is coming, nobody is that stupid to spit in the face of my entire client base and they'll be okay with it. >> the sec announced today they're looking into them put out a statement the commission will closely review action taken by regulated entities that may disadvantage investors otherwise unduly inhibit their ability to trade certain securities. that is not just the digital platform yes social media coming into play, a lot of platforms are banning some of the stock trading groups, facebook vaguely telling us the pages they removed a few pages violated the community standards and it's unrelated to the ongoing stock frenzy, we have popular form discord that tried to do the same and yet you still see this for gamestop really just swinging from 200 all the way to $400 range and we did see a closing in the green today

robinhood.or sleep number's january sale on the sleep number 360 smart bed. can it help with snoring? i've never heard snoring... exactly. no problem...and done. and now, save $1,000 on the sleep number 360 special edition smart bed, now $1,799. only for a limited time. >>> what i'm concerned about is the republican leadership in the house of representatives. assigning her to the education committee when she has mocked the killing of little children at sandy hook elementary school, when she has mocked the killing of teenagers in high school, at the marjorie stoneham douglas high school. it is absolutely appalling. >> growing calls for house republican leader kevin mccarthy. he of the visit of mar-a-lago today to publicly denounce freshman congresswoman qanon conspiracy theories marjorie taylor greene of georgia. long time sever bill kristol had this to take away. so far in 2021, kevin mccarthy has been more critical of liz cheney than of marjorie taylor greene. back with us tonight. author, vifl

robinhood bills itself as a free trading app.s been used by thousands of small investors or to bid up the stock price on stocks that wall street shorts. now, by doing this, the small investor has caused billions of dollars in losses this week for those hedge funds. now yesterday, as you said, the app halted trading on stocks like gamestop. the robinhood said that it needed to do that to raise money for collateral to handle the volume of trades, and they did, in fact, raise a with dollars. now -- a billion dollars. the texas attorney general's opened an investigation, lawmakers on capitol hill are also looking into this as well as regulators. the sec says they're watching this closely in a rare statement. they did say, in addition, we will act to protect retail investors when the facts demonstrate abusive or manipulative trading activity that is hinted -- prohibited by the federal securities laws. but a former regulator that we talked with said that it will be hard for the sec to find a violation. >> i think that when it comes to

robinhood's reversal comes after lawmakers and others accused robinhood for look ing out for its ownnhood the company raised $1 billion from investors yesterday as it was preventing retail investors or the little guys from trading game stop. robinhood ceo told cnn the company was just trying to comply with regulators. >> we're in historic situation where there's a lot of activity and a lot of buying concentrated in a relatively small number of symbols that are going viral on social media. we haven't really seen anything like this before. and to prudently manage the risk and the deposit requirements, we had to restrict buying in these 13 stocks. >> now, critics aren't so sure. the s.e.c. is looking into it as well as the texas attorney general, among others. let's talk about all of this with amy lynch, former s.e.c. regulator and front line compliance. nice to have you on. welcome. >> thank you for having me on, brooke. >> you just heard the ceo of robinhood. do you believe his explanation tore restricting these trades while also raising $1 billion from investors? >> well, it could ve

protesters targeted a local company called robinhood after robinhood shut things down for many stock traders. signs in support on menlo park at robinhood headquarters. protesters say they are angry that robinhood, the app, restricted trading in companies like guatemala and bed bath & beyond whose stocks preventing them from making money, retail investors here. others say it's making the investing process more open. >> i mean, you know, they are called robinhood, right? it's ironic they are helping the big guys. >> everything what is a boys club to this point. i think we are witnessing something revolutionary. >> after hours of pressure, both online and outside, robinhood did give in and says it will allow limited trading in gamestop's stock beginning tomorrow. >>> a state audit shows crooks bilked california out of at least $10 billion of fraudulent unemployment claims during this pandemic. the problem first came to light when people started complaining about multiple letters from the unemployment department being mailed to their homes. in some cases, dozens of letters. some addresse

one of the major reasons, it's not robinhood's fault or the red-it's fault.rest rates. everybody is locked in their apartments and houses. so it encourages gambling. if you can't make a return on a bond, you go out on the risk spectrum. if you go out and borrow money, you can enhance your position on robinhood. that's what's going on here. that never ends well. some traders will make money on this gamestop stuff and a lot won't. they won't know when to get out in time. trust me. gambling always loses. >> you know a lot about the industry. you'll get push-back on this. i appreciate your take, charles gasparino, great to see you. thank you. president biden begins to make exploratory committees on packing the court. ari fleischer is next. >> one after another, nominating people that are unqualified, people who refuse to say that brown versus board of education is precedent. you know they put 50 people on the lifetime federal court of appeals and not one is black? are you ok? it's just a cold. if you have high blood pressure, a cold is not just a cold. most cold