Treasury Secretary Janet Yellen
Janet Louise YellenOn The Money: Biden calls Dems and asks for a big COVID account | SEC’s Biden picks up as GameStop drama unfolds | Bezos resigns as CEO of Amazon, Senate Democrats, take the first step towards the grand bill COVID-19 Council of a public official for the next government: listen to KISS MORE will meet this week with financial regulatory groups to address the recent spikes in shares on GameStop and other commodities after armchair investors on Reddit have fueled surprise fluctuations in the market.
The meeting will examine the Securities and Exchange Commission (SEC) findings on investments and will include the Federal Reserve, the New York Fed and the Commodity Futures Trading Commission.
“Secretary Yellen believes that market integrity is important and asked for a discussion of the recent volatility in financial markets and whether recent activities are consistent with investor protection and fair and efficient markets,” said the Department’s spokesperson. Alexandra LaManna treasure to The Hill on Wednesday.
News of the meeting arrives as lawmakers raise the alarm about the consequences of fluctuations. Bipartisan members of Congress expressed concern that Robinhood Financial, through which many of Reddit’s investors did their business, reduced trading in GameStop, AMC Entertainment and other stocks after its stock price soared.
Robinhood said he restricted trade due to a $ 3 billion demand to support the movements, although critics criticized the decision as an effort to protect the Wall Street investors who had sold the shares.
The sharp increase in stocks seems to be reversing itself. GameStop saw its stock price skyrocket to $ 483, although it closed 60 percent at $ 90 on Tuesday.
Proponents of the increase saw it as a victory for small investors over Wall Street, but market watchers warned that such fluctuations could affect confidence in the stock market.
“Extreme stock price volatility has the potential to expose investors to rapid and severe losses and undermine market confidence,” said the SEC last week.
News of the meeting with Yellen was first reported by Reuters.