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‘Big Short’ Michael Burry says SEC subpoenaed him for GameStop frenzy


Pippa Stevens of CNBC.com brings you today’s top business news headlines. On today’s show, CNBC.com’s Yun Li explains how serious the SEC’s review of memes stocks gets. Additionally, Federal Reserve officials resigned amid the controversy over stock purchases.

Renowned investor Michael Burry revealed on Twitter that he had received a subpoena from the Securities and Exchange Commission in connection with his investigation of GameStop, a highly speculative stock that the “Big Short” trader once bet on.

“So who got an SEC subpoena for $ GME? Actually, I know who, they’re on my subpoena. With everything going on in the world…” Burry said in a now deleted tweet Friday. He attached a copy of the SEC letter dated September 21.

Burry, who runs Scion Asset Management, rose to fame betting against mortgage securities before the 2008 crisis. Burry was portrayed in Michael Lewis’ book “The Big Short” and the Oscar-winning film that followed.

The hedge fund manager has been trading GameStop stocks and publicly commenting on the stock even for the past few years. In late 2018, Burry first revealed a $ 6.8 million position in the video game retailer, according to InsiderScore.com. Over the following quarters, the investor reduced, removed and re-entered the stock several times, and his stake was worth over $ 17 million at the end of the third quarter of 2020 until he closed the position on next quarter.

Amazon announced its long-rumored domestic robot on Tuesday. It’s called Astro and will sell for $ 999. I had the chance to check it out in a demo with Amazon last week and wanted to share some thoughts on what Astro is, what it can and can’t do, and why Amazon decided to build a robot. domesticated.

Astro appears to be a strange gadget to be launched by Amazon. The company is best known as an online store. And most of its operating profit comes from its AWS cloud business.

Notably, Astro is a “Day 1 Edition” product, which means it won’t be sold to everyone at first. Instead, Amazon will ask people to register and then invite them to order the robot. This allows Amazon to avoid building too many gadgets it won’t sell and a public flop like the Amazon Fire Phone, which was scrapped in 2015.

Amazon said Astro will go on sale later this year, but did not give a specific launch date. It should be noted that Amazon has made similar promises regarding future products that have never been released or that have been seriously delayed.

Dallas Federal Reserve Chairman Robert Kaplan became the second regional central bank executive to resign on Monday, saying he was resigning early following a recent controversy over the stock transactions he made .

Kaplan’s early retirement follows an announcement earlier today by Boston Fed Chairman Eric Rosengren, who said he would also be leaving, but spoke of health concerns and not the business problem. of its investment portfolio.

“The Federal Reserve is approaching a critical point in our economic recovery as it deliberates on the future direction of monetary policy. Unfortunately, the recent emphasis on my financial disclosure risks becoming a distraction for execution by the Federal Reserve for this vital work, ”Kaplan said in a statement.

His retirement takes effect on October 8. The resignations come a day before Fed Chairman Jerome Powell spent two days on Capitol Hill briefing lawmakers on the central bank’s efforts to combat the economic impact of the Covid-19 pandemic.

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