The GameStop brief squeeze saga caught the attention of Congress Thursday morning and that buzz is already panning out into hearings on the subject.
Rep. Maxine Waters (D-CA), chairwoman of the Home Committee on Monetary Companies, introduced plans for an investigation into the scenario, pointing to a historical past of “predatory conduct” from hedge funds.
Waters didn’t name out Robinhood or every other buying and selling companies by identify, however did word {that a} future listening to would give attention to the systemic monetary affect of brief promoting, “gamification” and on-line buying and selling platforms. The listening to date is just not but set.
“Addressing that predatory and manipulative conduct is the duty of lawmakers and securities regulators who’re charged with defending buyers and guaranteeing that our capital markets are honest, orderly, and environment friendly,” Waters mentioned.
Within the Senate, incoming Senate Banking Chairman Sherrod Brown announced his own plans for a hearing on the “current state of the stock market” in gentle of latest occasions. “Individuals on Wall Road solely care in regards to the guidelines once they’re those getting harm,” Brown mentioned.
Earlier on Thursday, Democratic Reps. Rep. Rashida Tlaib, Alexandria Ocasio-Cortez and Ro Khanna all condemned the startup Robinhood for halting some trades within the midst of the Reddit retail investor-led volatility. Morgan Stanley-owned E-Commerce adopted go well with.
Texas Republican Senator Ted Cruz echoed Democrats’ considerations over Robinhood’s actions, signaling that even within the midst of pandemic reduction negotiations and an impeachment trial that lawmakers on each side of the aisle nonetheless have an urge for food for dragging tech in for questioning.
And apparently it’s not simply Congress. New York Legal professional Basic Letitia James additionally issued a brief assertion Thursday noting that her workplace is “conscious of considerations raised relating to exercise on the Robinhood app” and can be reviewing the scenario.
