White House press secretary Jen Psaki answers reporters’ questions about Janet Yellen and the increase in GameStop shares.
Congresswoman Alexandria Ocasio-Cortez and Senator Elizabeth Warren criticized hedge funds and investors who criticized Reddit investors who spurred GameStop’s astronomical recovery this week, accusing them of treating the stock market “as their own personal casino” for years.
GameStop’s stock has soared more than 700% in the past four days, a price rise so dramatic that TD Ameritrade and Charles Schwab have imposed restrictions on trading by the traditional video game retailer.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 415.19 | +70.20 | + 20.35% |
“For years, the same hedge funds, private equity firms and wealthy investors dismayed by the GameStop deal have treated the stock market as their own personal casino, while everyone else pays the price,” said Warren, D-Mass. , In a statement on Wednesday.
Warren, a 2020 presidential candidate and a leading advocate of strict laws to control Wall Street and the private equity industry, has renewed its push for the Securities and Exchange Commission to regulate the market more strictly.
GAMESTOP NAYSAYERS SEE STOCK CRUSH WITH $ 6B LOSSES
“It is past time for the SEC and other financial regulators to wake up and do their jobs – and with a new government and Democrats in Congress, I intend to make sure they do,” she said.
In a statement after the markets closed on Wednesday, Allison Herren Lee, SEC’s interim president, said the agency was “actively monitoring ongoing market volatility in the options and stock markets” and was working with regulators to “assess the situation and review the activities of regulated entities, financial intermediaries and other market participants.”
Federal Reserve Chairman Jerome Powell, speaking at a news conference on Wednesday, declined to comment.
White House press secretary Jen Psaki told reporters during an afternoon meeting that Treasury Secretary Janet Yellen is monitoring the situation, adding that “the stock market is not the only measure of the health of our economy “
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Ocasio-Cortez, DN.Y., echoed Warren’s message, tweeting on Wednesday: “I have to admit it is really something to see Wall Streeters with a long history of treating our economy like a casino complaining about a message board. of posters that also treat the market like a casino. “
GameStock became popular on the Reddit forum “Wallstreetbets”, where an army of local brokers supported the stock, betting that stock prices would rise even though Wall Street short sellers predicted exactly the opposite. Short sellers – who bet on falling stocks by selling stocks they don’t own – lost billions this week.
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