Congress plans hearing after GameStop Stock Mania and Robinhood Trading Freeze


A partisan congress was united by outrage after the app Robin Hood And some personal trading froze in response to other retail stock trading companies Massive Spike in GameStop and AMC Stocks Fueled by Internet chat rooms. Some hedge funds placed big bets on the collapse of those companies, and the resulting instability and Robinhood’s willingness to impose sanctions in a way that favored big investors and punished smaller ones had Democrats and Republicans alike .

“fully agree,” Senator Ted Cruz tweeted, In response to one of the most conservative senators Tweet from Representative Alexandria Ocasio-CortezA democratic socialist who condemned Robinhood to “prevent stock retail investors from buying stock, while hedge funds are able to trade stocks independently as they see fit.”

Leaders of the House and Senate committees planned the committees responsible for oversight of the financial industry for hearings, given Robinhood’s decision and the circumstances for market changes.

“We must deal with hedge funds whose unethical conduct led to recent market fluctuations and we should examine the market in general and how it is manipulated by hedge funds and their financial partners to benefit themselves. “Maxine Waters, chairman of the House Financial Services Committee.

Representative Patrick McHenry, the ranking Republican on the committee, said in a statement that he had asked Waters to call for a hearing.

On Capitol Hill on Thursday afternoon, Cruz called for transparency and said lawmakers demanded to know why Robinhood prevented the trading of shares held by ReddyBats and other chat rooms on Reddit.

Moderate Republican Senator Pat Tommy called the retail investor “very upset”, but also raised concerns about how the business frenzy would end. Tommy said, “The way it’s ending badly for most is a bubble, which is about to burst and it’s going to fall in the end.”

Incoming Senate Banking Committee Chairman Sherrod Brown also said that he plans to hold a hearing on the issue.

His statement said that American workers have been breaking the Wall Street system for years. They are paying its price. The time has come for the SEC and Congress to work for everyone, not just Wall Street but the economy as well.

During a television interview on Thursday, Senator Elizabeth Warren took direct aim at the US Securities and Exchange Commission, accusing the agency of failing to clarify the rules and turning the stock market into a “casino”.

“We need an SEC that is going to step in, which is going to implement some clear rules and then it will be ready to implement those rules,” Warren said.

Late Wednesday, the SEC issued a statement saying it was “monitoring ongoing market volatility” and would work with regulators to assess the situation.

During White House press talks on Thursday, Press Secretary Jane Saki cited the SEC’s statement to reporters and declined to provide additional comment. On Wednesday, Saki said members of the economic team, including Secretary Janet Yellen, were also monitoring the situation.

On Thursday evening, an email from Robinhood to users of the service said it would allow a “limited purchase” Friday of GameStop and AMC securities.

Despite its general reaction to action by online trading services, tensions between political parties persisted after the capital riots on 6 January.

Ocasio-Cortez wrote in a tweet replying to Cruz, endorsing his stance towards Robinhood, “I am happy to work with Republicans on this issue, but there is common ground, but you did mine 3 weeks ago.” Was murdered. ” .

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