Replace: There’s a whole second session of this? My lord.
Replace two: The listening to went on and on — it continues as I write to you! — however one thing did come out that was price sharing. Particularly that Congress obtained Robinhood CEO Vlad Tenev to report that his firm generates no less than 50% of its income from fee for order stream, or PFOF. On condition that Robinhood’s PFOF incomes were around $220 million last quarter, we are able to place a max cap of the corporate’s This autumn 2020 income at $440 million, although I’d hazard a guess that it was extra within the $3xx million vary.
At present the House Financial Services Committee dragged earlier than them (just about) for questioning the CEO of Reddit, a Cato wonk, the social media icon DeepFuckingValue, the CEO of Citadel Kenneth Griffin, a hedge fund bro who obtained whomped by DeepFuckingValue and the CEO of Robinhood Vlad Tenev, who obtained womped when particular person buyers joined DeepFuckingValue in his womping of the hedge fund and thus womped his capital requirements resulting in general market chaos.
It was not very helpful. Between a cascade of Zoom failures — mutings, incorrect unmutings, a inexperienced display that was not really in use and an precise gavel — members of Congress largely took five-minute slots to embarrass themselves, and never make materials factors.
The format was not conducive to actual questioning, and most questions had been each too lengthy and both too exact and misguided of their course, or too imprecise, even when they landed within the strike zone. Sitting right here I’m attempting to recall a single factor that I discovered. I suppose that Robinhood’s CEO was unsure on the small print of his firm’s arbitration settlement with customers. And maybe a bit of bit about how many of its users trade options. And that Reddit’s CEO has a pleasant swimsuit.
Some members of Congress mocked the proceedings, calling them political theater. That earned a rebuke by Maxine Waters, chair of the Home Monetary Providers Committee.
Some members of Congress practically obtained round to asking one thing helpful. However largely the tactic of asking questions was bilge, the responses canned and nothing a lot uncovered.
What would have labored? I suppose Congress may have introduced in a number of precise specialists and a extra restricted variety of company, after which hammered them with questions concerning the moral actuality of fee for order stream, Robinhood’s app mechanics and the way simply it presents entry to unique buying and selling instruments, and the like. That may have helped.
As a substitute, we obtained nice stuff like this:
Which was not very useful. That stated, there have been some good memes and jokes, so, let’s have some enjoyable as an alternative of being aggravated with our elected representatives:
The remainder of it was a waste of time. As I write this sentence to you, a member of Congress simply requested how Robinhood obtained its title. Which is dumb, because the title is so apparent it practically makes your head damage with how earnest it’s.
So there’s that. This was a waste. Actual questions stay. They largely didn’t get requested, and definitely didn’t get answered.