Former SEC chairman Harvey Pitt discusses the GameStop stock frenzy, regulating retail investments and Tesla’s investments in bitcoin.
As GameStop and other favorite Reddit stocks remain heavily sold and subject to major fluctuations, the Securities and Exchange Commission on Tuesday announced measures to speed up the way it handles investigations by senior officials, giving them more legal authority. .
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 50.31 | -9.69 | -16.15% |
“This will empower senior officials to exercise the Commission’s delegated authority to authorize the team to subpoena documents and testify under oath. This delegation of authority will allow the investigative team to act more quickly to detect and prevent ongoing fraud, preserve assets and protect vulnerable investors, ”Acting President Allison Herren Lee said in a statement.
ROBINHOOD SUED BY THE FAMILY AFTER THE SON’S SUICIDE
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 5.50 | -0.68 | -11.00% |
| BBBY | BED BATH & BEYOND INC. | 27.12 | +0.85 | + 3.24% |
| BB | BLACKBERRY LIMITED | 13.43 | -0.33 | -2.40% |
Although the SEC did not specify Reddit, GameStop or others by name, it noted that the change “helps to ensure that the investigation team can work effectively to protect investors in an era when the pace of fraud – such as the pace of markets – it’s always faster. ”
The SEC did not respond to FOX Business’s request for further clarification.
CHARLES SCHWAB CEO: WE DO NOT RESTRICT STOCKS AS OTHER FIRMS HAVE IN FRENZY
Extreme trading in heavily sold stocks like GameStop, Bed Bath & Beyond, AMC and others led the popular investment app Robinhood last month to restrict trading of certain names, driving the retail trading community into a frenzy of its own.
Pressure on financial regulators has also increased, even becoming a daily question at White House press conferences.
Last week, US Treasury Secretary Janet Yellen, in the short term, called a meeting with the SEC and the heads of the Federal Reserve, the New York Federal Reserve and the CFTC.
After the meeting, Yellen’s team, in a statement, noted.
“The SEC and the CFTC are looking into whether business practices are consistent with investor protection and fair and efficient markets. Secretary Yellen believes it is imperative to maintain the integrity of these markets and ensure investor protection. “
ROBINHOOD FACES CLASS ACTION HELP ON THE TRADING PLATFORM THAT IS “DESIGNED TO DOWNLOAD”
Former SEC chairman Harvey Pitt agreed that reviewing business practices is a good first step, but noted the challenges that regulators face in cases like this.
“Unless there is clear evidence that someone was deliberately trying to influence a stock’s price, there is very little the government can do about it,” he told FOX Business.
ROBINHOOD CEO: US MARKETS NEED A BIG UPDATE
Robinhood CEO Vlad Tenev, who defended the company’s decision to restrict trade in selected names, is due to appear in Congress on February 18 to face questions about what exactly has happened in recent weeks.
He is also advocating the adoption of a real-time settlement system.
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