President Joe Biden’s top economic advisers expressed confidence in US market regulators, saying they should care less about speculation and volatility than about ensuring the “underlying plumbing” is solid. .
This is the job of the U.S. Securities and Exchange Commission, “and if you read their statements, you’ll find that they’re closely related to this case,” Jared Bernstein, a member of Biden’s Board of Economic Advisers, told Fox News. Sunday “.
His comments follow a week of Wall Street frenzy focused on the video game retailer GameStop Corp. which burned hedge fund and called for calls from some Democrats, including Sen. Elizabeth Warren, to address the SEC market manipulation.
“What’s happening with GameStop is just a reminder of what’s been going on on Wall Street for years, years and years,” Warren said Sunday on CNN’s “State of the Union.” “It’s time for the SEC to get out of its hands and do its job.”
The SEC operates under the leadership of interim President Allison Herren Lee, while Biden awaits confirmation from Senate Gary Gensler, his choice to lead the agency.
“The president’s main concern is that the responsible regulator, the Securities and Exchange Commission, must ensure that there is no volatility and speculation in the market (this is a constant), but that the underlying plumbing of the financial markets remains sound, ”Bernstein said.
Read more: Gensler’s confirmation nowhere as GameStop proves SEC role
The SEC said Friday that it is “closely monitoring the extreme volatility of certain stock trading prices over the past few days” and reviewing “actions taken by regulated entities that may disadvantage investors or unduly inhibit their ability to trade certain stocks.” titles “
Lawmakers on both sides questioned last week why platforms like Robinhood Markets Inc. they slowed down the trading of some of the companies that raised stock prices after being promoted on social media.
Read more: GameStop Short Nightmare shows few signs of becoming contagious
Brian Deese, head of Biden National Economic Council, said last week’s stock changes “are being properly investigated” by the SEC with a “real focus on protecting retail investors and market integrity.”
He suggested the administration could try to expand its oversight, saying “let’s take a closer look at the broader policy issues associated with equity markets.”
The chairmen of two House and Senate committees pledged last week hold hearings on recent stock market transfers, but no dates have been announced.