Minister of Finance Janet Yellen
Janet Louise Yellen: On The Money: Biden calls Dems and urges big COVID bill | SEC’s choice of Biden offside as the GameStop drama unfolds Bezos is stepping down, while Senate Democrats, Amazon’s CEO, are taking the first step toward the big COVID-19 bill. A board of public officials in the incoming administration: listen to KISS MORE will meet this week with financial regulatory groups to deal with recent rises in GameStop stocks and other commodities after Reddit armchair investors fueled surprising market fluctuations.
The meeting will examine the Securities and Exchange Commission’s (SEC) findings on investments and will include the Federal Reserve, the New York Fed and the Commodity Futures Trading Commission.
“Secretary Yellen believes that the integrity of markets is important and has called for a debate on the recent volatility of financial markets and whether recent activities are consistent with investor protection and fair and efficient markets,” said the spokeswoman. Treasury Department, Alexandra LaManna, at The Hill Wednesday.
The news of the meeting comes when lawmakers sound the alarm for falling fluctuations. Members of the bipartisan Congress expressed concern that Robinhood Financial, through which many Reddit investors conducted their operations, reduced trading on GameStop, AMC Entertainment and other stocks after the price of their shares skyrocketed. actions.
Robinhood said it was restricting trade due to the $ 3 billion demand to support the moves, though critics criticized the decision as an effort to protect Wall Street investors who had downgraded shares.
It seems that the sharp rise in stocks is reversing. GameStop saw its stock price soar to a high of $ 483, though it closed 60% on Tuesday at $ 90.
Proponents of the rise heralded it as a win for small investors on Wall Street, but market watchers have warned that such fluctuations could affect confidence in the stock market.
“Extreme stock volatility has the potential to expose investors to rapid and severe losses and undermines market confidence,” the SEC said last week.
Reuters first reported the news of the meeting with Yellen.