Secretary of the Treasury Janet Yellen
Janet Louise Yellen: The Money: Biden calls Dems, urges big COVID bill | Biden’s SEC selection has been removed as the GameStop drama unfolds Bezos resigns as Amazon CEO, Senate Democrats take first step toward big COVID-19 project A tip from civil servants to the new administration: listen to KISS MORE will meet this week with financial regulators to address recent increases in shares in GameStop and other commodities after Reddit armchair investors fueled surprise market fluctuations.
The meeting will review the findings of the Securities and Exchange Commission (SEC) on investment and will include the Federal Reserve, the New York Fed and the Commodity Trading Commission.
“Secretary Yellen considers market integrity important and called for a discussion on recent volatility in financial markets and whether recent activities are consistent with investor protection and fair and efficient markets,” Treasury Department spokeswoman Alexandra LaManna told The Hill Wednesday.
News of the meeting comes as lawmakers sound the alarm about falling fluctuations. Bipartisan members of Congress have expressed concern that Robinhood Financial, through which many Reddit investors traded, has restricted trading in GameStop, AMC Entertainment and other stocks after their stock prices rose.
Robinhood said it restricted trading because of a $ 3 billion request to support the shares, although critics criticized the decision as an effort to protect Wall Street investors who shortened the shares.
The sharp rise in stocks seems to be reversing. GameStop saw its share price rise to a high of $ 483, although it closed 60% at $ 90 on Tuesday.
Proponents of growth have touted it as a victory for small investors against Wall Street, but market watchers have warned that such fluctuations could impact confidence in the stock market.
“Extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence,” the SEC said last week.
The news of the meeting with Yellen was first reported by Reuters.