Trump Media CEO Devin Nunes is taking action against what he perceives as illegal manipulation of the company's stock. Here are the key points:
Letter to Lawmakers: Nunes wrote a letter to House Republican committee heads, urging them to investigate potential unlawful manipulation of Trump Media's stock. He cited concerns about "naked" short selling, where shares are sold before confirming their availability to borrow for shorting.
Request for Investigation: Nunes emphasized the need for a swift investigation into the scope of the alleged trading misconduct, including potential violations of laws like RICO statutes and tax evasion laws.
Market Volatility: Trump Media's stock has experienced significant volatility since its IPO, with fluctuations in price. Nunes highlighted the high cost of shorting Trump Media shares compared to other stocks, suggesting a financial incentive for brokers to lend non-existent shares.
Market Makers: Nunes called out four major market makers, including Citadel Securities, for dominating trading volume in Trump Media shares. These market makers accounted for over 60% of the trading volume.
Response from Citadel Securities: Citadel Securities pushed back against Nunes's accusations, describing him as a "proverbial loser" for blaming short-sellers for the stock's decline.
Executive Compensation: Despite the stock's fluctuations, Trump and other executives received millions of extra shares as part of a deal with the SPAC that took the company public. This compensation was triggered by the stock trading above a certain threshold for a specified period.
Nunes's actions reflect Trump Media's efforts to address concerns about the company's stock performance and potential market manipulation, particularly in relation to short selling.
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