Billionaire Ken Griffin's firm calls Trump Media's CEO a 'loser' after criticism of short-selling
Trump Media's CEO is a "proverbial loser" for blaming DJT's stock crash on short-sellers, Citadel Securities said.
AP Photo / Manuel Balce Ceneta
- Trump Media's CEO is a "proverbial loser" for blaming short sellers for the stock's crash.
- Trump Media fired back at the firm's statement, accusing the market maker of "screwing over" investors.
- In a recent letter, TMTG's CEO blamed the company's stock crash on short-sellers.
Billionaire Ken Griffin's Citadel Securities slammed Trump Media's CEO after the executive blamed short-sellers for tanking the company's stock.
The firm called David Nunes, Trump Media's chief executive, a "loser" in a statement to the Financial Times on Friday, responding to a letter Nunes wrote earlier this week that bemoaned "potential market manipulation" of Trump Media shares.
The letter, which was addressed to the Chair and CEO of the Nasdaq Exchange and filed to the Securities and Exchange Commission on Friday, said brokers overseeing DJT trades had "a significant financial incentive to lend non-existent shares," flagging concerns about the illicit practice known as naked short selling.
Citadel, Jane Street, and two other market makers were responsible for 60% of "the extraordinary volume of DJT shares traded," the letter added.
Nunes asked the stock exchange to "foster transparency and compliance" by making sure brokerages were adhering to regulations.
"Devin Nunes is the proverbial loser who tries to blame 'naked short selling' for his falling stock price," Citadel said to the FT. "Nunes is exactly the type of person Donald Trump would have fired on "The Apprentice." If he worked for Citadel Securities, we would fire him, as ability and integrity are at the centre of everything we do."
Trump Media later replied to Citadel's statement.
"Citadel Securities, a corporate behemoth that has been fined and censured for an incredibly wide range of offenses including issues related to naked short selling and is world famous for screwing over everyday retail investors at the behest of other corporations, is the last company on earth that should lecture anyone on 'integrity,'" the company said to the FT.
Spokespeople from both Citadel Securities and Trump Media reiterated their responses and declined to comment further when reached by Business Insider.
Shares of Trump Media have been on a rollercoaster since the company went public at the end of March, with the stock plunging 70% from its peak before rebounding 47% this week.
The company has attempted to pass the blame for the issues plaguing the business and for its share-price declines, filing a suit against two Truth Social cofounders for making "reckless" decisions ahead of the stock's initial public offering.