President Biden’s recent pick to be Treasury Secretary Janet Yellen reportedly has a personal interest in the recent GameStop stock scandal among retail investors and the investing platform Robinhood.
On Thursday, Robinhood illegally barred investors from buying and selling GameStop stock after the retail investors had bought up GameStop stock, which resulted in pushing GameStop’s price to over $400 a share.
What’s worse than that is that Robinhood was reportedly illegally selling the shares that belonged to those investors, as well.
Investors are furious at Robinhood and have asked the Biden administration to take action against the platform, but it appears that it’s doubtful to happen. After all, Yellen, President Biden’s pick for Treasury Secretary, was paid $810,000 by Citadel, Robinhood’s biggest customer.
More specifically, the hedge fund paid Yellen $292,500 for a speech that she made on October 17, 2019, $180,000 for one on December 3, 2019, and $337,500 for speaking at a series of webinars held from October 9-27, 2020.
Citadel is an investor in Melvin Capital, a hedge fund reportedly on the brink of bankruptcy following the buying spree from retail investors, as it was forced to buy GameStop shares despite the steep prices.
According to The Wall Street Journal, Citadel and another firm, 72Point, invested $2.75 billion in Melvin after losing 30% of its capital.
On Wednesday, White House press secretary Jen Psaki said that Yellen, who was confirmed by the Senate on Monday, is “monitoring the situation.”