Devin Nunes, the CEO of Trump Media, has urged House Republican committee leaders to investigate the potential unlawful manipulation of his company’s stock. This request follows Nunes’ claim that Trump Media has been a victim of “naked” short selling, where shares are sold without being borrowed first. Nunes wants the committee to look into whether any laws, including RICO statutes and tax evasion laws, were violated. The goal of the investigation is to protect shareholders and hold perpetrators accountable for any illegal activity.
The letter from Nunes was addressed to four House committee leaders – Financial Services Chairman Patrick McHenry, Judiciary Chairman Jim Jordan, Ways and Means Chairman Jason Smith, and Oversight Chairman James Comer. These leaders have not yet responded to requests for comment on the letter. The stock price of Trump Media, which is majority-owned by former President Donald Trump and created the social media app Truth Social, has been trending down in volatile trading sessions since its debut on the Nasdaq on March 26. DJT reached a high of nearly $80 a share but has since lost more than half of its value.
Nunes’ letter also escalates a feud with Citadel Securities, a capital markets firm founded by GOP megadonor Ken Griffin. Nunes previously warned Nasdaq CEO Adena Friedman that DJT was on the Reg SHO threshold list, indicating potential unlawful trading activity. More than 60% of DJT shares have been traded by four market participants, including Citadel Securities. The firm has criticized Nunes for blaming falling stock prices on “naked short selling” and compared him to someone Donald Trump would have fired on “The Apprentice.” Trump Media’s spokeswoman fired back at Citadel Securities, accusing them of unethical behavior and stating they are the last company to lecture others on integrity.
It is essential for the House Republican committee leaders to investigate Nunes’ claims of potential unlawful manipulation of Trump Media’s stock. The allegations of “naked” short selling and the involvement of market participants such as Citadel Securities need to be thoroughly examined to ensure the protection of shareholders and accountability for any illegal activities. The involvement of high-profile individuals like former President Donald Trump in the company adds significance to this investigation. The continued volatility in DJT’s stock price underscores the importance of addressing any potential market manipulation swiftly and effectively.
The outcome of the investigation could have far-reaching implications not only for Trump Media but also for the broader financial markets. If any laws were indeed violated, it is crucial to hold the perpetrators accountable and prevent similar incidents in the future. The involvement of powerful entities like Citadel Securities in this situation raises questions about the integrity of the market and the need for transparency and oversight. The House committee leaders have a responsibility to thoroughly investigate Nunes’ claims and take appropriate action to protect the interests of investors and ensure the fair and transparent operation of the financial markets.
In conclusion, the call for an investigation into the potential unlawful manipulation of Trump Media’s stock by Devin Nunes highlights the importance of maintaining integrity and transparency in the financial markets. The involvement of high-profile individuals and entities like former President Donald Trump and Citadel Securities adds complexity to the situation and underscores the need for a thorough and impartial examination by the House committee leaders. The outcome of this investigation could impact not only Trump Media but also the broader financial markets, making it essential to address any allegations of market manipulation or illegal activity promptly and effectively. Ultimately, the goal is to protect shareholders, hold perpetrators accountable, and uphold the principles of fairness and integrity in the financial system.
