Devin Nunes, CEO of Truth Social, has made headlines once again, this time vowing to defend retail investors from possible illegal short selling of his company’s shares. Nunes recently criticized President Biden for mentioning the decline in Trump Media’s stock price during a speech in Scranton, Pennsylvania.
Nunes believes that the stock decline may be due to alleged illegal market manipulation, specifically “naked” short selling. He warned Nasdaq CEO that brokers may have a financial incentive to lend non-existent shares for short selling, and pointed out that Trump Media appeared on Nasdaq’s “Reg SHO threshold list,” indicating possible illegal trading activity.
The Securities and Exchange Commission (SEC) notes that naked short selling is not necessarily a violation of federal securities laws unless used to manipulate the market. However, Nunes has specifically named Citadel Securities, a market firm, in his letter addressing the issue. Citadel Securities, founded by major GOP donor Ken Griffin, mocked Nunes for blaming short selling for the falling stock price.
In response, Nunes fired back at Citadel Securities, questioning their personal attack on him. It is worth mentioning that Griffin is a major donor to GOP candidates, including Nunes himself before he took the helm of Trump Media. The ongoing feud between Nunes and Citadel Securities highlights the complex relationship between politics, finance, and media in today’s volatile market.
Only time will tell how this clash between Nunes and Citadel Securities will play out, and what impact it will have on the future of Truth Social and Trump Media. In the meantime, retail investors are left wondering who to trust and how to navigate the ever-changing landscape of the stock market.
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