Exhibit 27 (Dkt. 559-29, S.D. Fla.)

Summary

Exhibit 27 (Document 559-29) in Case 1:21-md-02989-CMA, entered on the FLSD docket April 28, 2023, is a three-page printout, dated 1/27/23, from the govinfo.gov record of Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide, a virtual hearing before the Committee on Financial Services, U.S. House of Representatives, February 18, 2021, Serial No. 117-3. The printout reproduces the committee roster under Chairwoman Maxine Waters and Ranking Member Patrick McHenry and an excerpt of questioning in which Mr. Gonzalez of Ohio asks Mr. Tenev whether DTCC would have stepped in and liquidated the portfolio had the firm not de-risked. Mr. Tenev answers that the exact steps DTCC would have taken are not certain but that it would not have been a good situation for the firm or the customers.

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Date: 2023-04-28

Cite this document

“Exhibit 27 (Dkt. 559-29).” Original at archive.org, dated 2023-04-28. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2023-04-28-covid-era-misc-e2eb79fc-1/, SHA-256 e2eb79fc10ef1a6cc9b60b573a7aee38cba66f24c8eca17374b30b40a22cb859.

Full text

Case 1:21-md-02989-CMA Document 559-29 Entered on FLSD Docket 04/28/2023 Page 1 of 3

EXHIBIT 27
Case
1/27/23, 1:21-md-02989-CMA
12:27 PM - Document
GAME STOPPED? WHO 559-29
WINS AND Entered
LOSES WHEN SHORTon FLSDSOCIAL
SELLERS, Docket 04/28/2023
MEDIA, AND RETAIL Page 2 of 3
INVESTORS COLLIDE

[House Hearing, 117 Congress]
[From the U.S. Government Publishing Office]

GAME STOPPED? WHO WINS AND LOSES
WHEN SHORT SELLERS, SOCIAL MEDIA,
AND RETAIL INVESTORS COLLIDE

VIRTUAL HEARING

BEFORE THE

COMMITTEE ON FINANCIAL SERVICES

U.S. HOUSE OF REPRESENTATIVES

ONE HUNDRED SEVENTEENTH CONGRESS

FIRST SESSION

FEBRUARY 18, 2021

Printed for the use of the Committee on Financial Services

Serial No. 117-3

[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]

U.S. GOVERNMENT PUBLISHING OFFICE
43-966 PDF WASHINGTON : 2022

HOUSE COMMITTEE ON FINANCIAL SERVICES

MAXINE WATERS, California, Chairwoman

CAROLYN B. MALONEY, New York PATRICK McHENRY, North Carolina,
NYDIA M. VELAZQUEZ, New York Ranking Member
BRAD SHERMAN, California FRANK D. LUCAS, Oklahoma
GREGORY W. MEEKS, New York BILL POSEY, Florida
DAVID SCOTT, Georgia BLAINE LUETKEMEYER, Missouri
AL GREEN, Texas BILL HUIZENGA, Michigan
EMANUEL CLEAVER, Missouri STEVE STIVERS, Ohio
ED PERLMUTTER, Colorado ANN WAGNER, Missouri
JIM A. HIMES, Connecticut ANDY BARR, Kentucky
BILL FOSTER, Illinois ROGER WILLIAMS, Texas
JOYCE BEATTY, Ohio FRENCH HILL, Arkansas
JUAN VARGAS, California TOM EMMER, Minnesota
JOSH GOTTHEIMER, New Jersey LEE M. ZELDIN, New York
VICENTE GONZALEZ, Texas BARRY LOUDERMILK, Georgia
AL LAWSON, Florida ALEXANDER X. MOONEY, West Virginia
MICHAEL SAN NICOLAS, Guam WARREN DAVIDSON, Ohio
CINDY AXNE, Iowa TED BUDD, North Carolina
SEAN CASTEN, Illinois DAVID KUSTOFF, Tennessee
AYANNA PRESSLEY, Massachusetts TREY HOLLINGSWORTH, Indiana
RITCHIE TORRES, New York ANTHONY GONZALEZ, Ohio

https:l/www.govinfo.gov/contenUpkg/CHRG-117hhrg43966/html/CHRG-117hhrg43966. htm 1/83
Case
1/27/23, 1:21-md-02989-CMA
12:27 PM - Document
GAME STOPPED? WHO 559-29
WINS AND Entered
LOSES WHEN SHORTon FLSDSOCIAL
SELLERS, Docket 04/28/2023
MEDIA, AND RETAIL Page 3 of 3
INVESTORS COLLIDE

whole industry will have to adapt.
Mr. Lawson. I understand that. And I guess from our
standpoint, and I don't have much more time, but what do you
recommend to us to try to keep this from happening again?
Mr. Plotkin. I think to some degree, markets are self-
correcting, moving forward, stocks--! don't think you're going
to see stocks with the kind of short interest levels that we
saw prior to this year. I don't think investors like myself
want to be susceptible to these type of dynamics. I think there
will be a lot closer monitoring of message boards. There will
be software providers. We have a data science team that will be
looking at that. Whatever regulation that you guys come up
with, certainly, we'll abide by. And I look forward to helping,
if you guys want to have future conversations about that.
Mr. Lawson. Okay. Thank you.
Madam Chairwoman, my time is running out, so I yield back.
Chairwoman Waters. Thank you very much.
Mr. Gonzalez of Ohio, you're recognized for 5 minutes.
Mr. Gonzalez of Ohio. Thank you, Madam Chairwoman. I want
to thank Ranking Member McHenry for his leadership in calling
for this hearing today, and also you, Madam Chairwoman, for
bringing us together.
Mr. Tenev, I'm going to start my questions with you by
walking through a series of events from that day in January,
just to make sure we're all on the same page. In your
testimony, you mentioned that the automated deposit
requirements from DTCC came in at 5:11 a.m. Eastern time, and
it showed a $3 billion deficit, correct?
Mr. Tenev. I believe that's correct, yes.
Mr. Gonzalez of Ohio. At that point, 5:11 a.m., did you
have the liquidity to meet the additional $3 billion deposit
requirement?
Mr. Tenev. As I wrote in detail in my written testimony,
there were a series of steps that the Robinhood securities team
took to--
Mr. Gonzalez of Ohio. Reclaiming my time, sir. At that
exact moment, did you have the liquidity for $3 billion? At
5:11 a.m.?
Mr. Tenev. At that moment, we would not have been able to
post the $3 billion in collateral.
Mr. Gonzalez of Ohio. Okay. So when you said, and you've
said this multiple times, that you did, in fact, have the
liquidity, and you didn't have a liquidity problem, at that
moment in time, that is not necessarily true, correct? You had
to take steps to get there?
Mr. Tenev. Congressman, we did have to--the Robinhood
Securities team had to work with our relevant clearinghouses to
adjust the risk profile of the trading day in order to meet our
collateral requirements.
Mr. Gonzalez of Ohio. Right. And in order to do that, your
choice was to throttle trading to prevent your clients from
being able to purchase certain shares, correct?
Mr. Tenev. That's correct. Robinhood Securities had to
restrict buying in about 13 securities.
Mr. Gonzalez of Ohio. Okay. And if you had not been able to
de-risk the portfolio, you wouldn't have been able to raise the
money and get the bar requirement and the excess capital charge
waived to de-risk the portfolio, then DTCC would have stepped
in and liquidated the portfolio, correct?
Mr. Tenev. I'm not sure what exact steps that they would
have taken if we weren't in compliance with the deposit
requirements, but it would not have been a good situation for
the firm or the customers.
Mr. Gonzalez of Ohio. Reclaiming my time, I would draw
everyone's attention to the letter that Ranking Member McHenry
https:l/www.govinfo.gov/contenUpkg/CHRG-117hhrg43966/html/CHRG-117hhrg43966. htm 58/83

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Original: archive.org