Lawmakers On Capitol Hill Looking Into Rise & Fall Of GameStop Stock

CBS4's Nancy Chen has more on the diverse cast of characters that appeared virtually before Congress.

Video Transcript

LAUREN PASTRANA: It's your money and lawmakers on Capitol Hill are looking into the rise and fall of GameStop. The gaming merchandise retailer stock soared 1,600% before crashing back down. CBS 4's Nancy Chen has more on the diverse cast of characters who appeared virtually before Congress.

KEITH GILL: My family was not wealthy.

NANCY CHEN: Keith Gill may be better known by his online alias, Roaring Kitty, the name he used during the GameStop trading frenzy.

KEITH GILL: It is true that my investment in that company multiplied in value many times for that I feel enormously fortunate.

NANCY CHEN: Gill mobilized an army of investors through the Wall Street Bets group on Reddit, whose CEO defended the platform's role in the January drama.

STEVE HUFFMAN: Wall Street Bets may look sophomoric or chaotic from the outside, but the fact that we're here today means they've managed to raise important issues.

NANCY CHEN: Much of the buying happened on the Robinhood trading platform whose CEO faced pointed questioning from the House Financial Services Committee.

MAXINE WATERS: I don't have time. I just need a yes or no answer.

PATRICK MCHENRY: Why did Robinhood restrict the buying, but not the selling?

NANCY CHEN: Vlad Tenev told lawmakers when the app halted buying at the height of the run up it was not to protect the hedge funds who had bet against the stock and were losing billions.

VLAD TENEV: Robinhood Securities put the restrictions in place in an effort to increase regulatory deposit requirements, not to help hedge funds. We don't answer to hedge funds.

NANCY CHEN: One of those hedge funds was Melvin Capital Management whose CEO described a barrage of hostile posts from small investors.

GABRIEL PLOTKIN: Many of these posts were laced with anti-Semitic slurs directed at me and others. The posts said things like, it's very clear we need a second Holocaust.

NANCY CHEN: The wild swings unsettled both Wall Street and Congress creating then destroying billions of dollars of wealth and opening a new debate about the need for stricter regulations. Nancy Chen, CBS News, New York.

LAUREN PASTRANA: At its height, GameStop stock topped $480 per share. Today, it's hovering closer to 40.