Treasury Secretary Janet Yellen called a meeting with key financial regulators to discuss recent volatility in GameStop-related financial markets Corp.
, confirmed a Treasury spokeswoman on Tuesday night
Ms. Yellen, who chairs a board of regulators that monitors the risks of financial stability, requested a meeting with officials from the Securities and Exchange Commission, the Federal Reserve, the New York Fed and the Commodity Futures Trading Commission, the spokeswoman said. voice of the Treasury Alexandra LaManna.
“Secretary Yellen believes that market integrity is important and called for a discussion of recent volatility in financial markets and whether recent activities are consistent with investor protection and fair and efficient markets,” said Ms. LaManna.
The meeting, due to take place on Thursday, was previously reported by Reuters.
A group of day traders met in recent weeks to buy GameStop shares, raising the price more than 10 times and generating complaints that the frenetic activity was manipulative.
The SEC said on Friday that it plans to closely review the actions of some brokers that have restricted investors’ ability to trade volatile stocks like GameStop, the clearest indication that regulators were examining possible misconduct around the mania of trading that flooded stocks like GameStop, AMC Entertainment Holdings Inc.
and Novavax Inc.
Robinhood Markets Inc. restricted investors’ ability to buy shares in GameStop and 12 other companies last week by dealing with the impact of an increase in trading on their financial needs.
Analysts expect the trading craze to lead to stricter SEC rules on brokers to ensure they have sufficient capital during periods of market volatility. Some legislators on Capitol Hill also proposed legislative changes, such as restrictions on short sales and taxes on financial transactions, that could resolve the situation.
Asked about the volatility of negotiations on Monday, White House press secretary Jen Psaki said the SEC is reviewing and monitoring the situation, adding: “There is an important set of political issues that have been raised as a result of the volatility the market in recent days, and we think that Congress’s attention to these issues is appropriate. “
GameStop saw its biggest percentage drop in one day on Tuesday, dropping $ 135, or 60%, to $ 90. This eliminated last week’s earnings, although the video game company’s shares are still up 378% year.
Write to Kate Davidson at [email protected]
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