President Joe Biden’s key economic advisers expressed confidence in US market regulators, with one saying they should worry less about speculation and volatility, but make sure the “underlying plumbing” is healthy.
That is the job of the US Securities and Exchange Commission, “and if you read their statements, you will find that they are very much in that case,” said Jared Bernstein, a member of Biden’s Council of Economic Advisers, on “Fox News Sunday. . “
His comments follow a week of Wall Street frenzy centered on the video game store GameStop Corp. that’s burned hedge funds and called for calls by some Democrats, including Senator Elizabeth Warren, to sue the SEC market manipulation.
“What’s happening with GameStop is just a reminder of what’s been going on on Wall Street for years and years and years,” Warren said on CNN’s “State of the Union” Sunday. “It’s time for the SEC to get rid of their devils and do their job.”
The SEC operates under Acting Chairman Allison Herren Lee, while Biden awaits Senate confirmation from Gary Gensler’s choice to lead the agency.
“The chief concern of the president there is that the responsible regulator, the Securities and Exchange Commission, must ensure that there is no volatility and speculation in the market – that’s a constant – but that the underlying sanitary of the financial markets remains. . sound, ”said Bernstein.
Read more: Gensler confirmation nowhere in sight as GameStop tests SEC roll
The SEC said on Friday that it is “closely monitoring the extreme price volatility of the trading prices of certain stocks in recent days” and “actions taken by regulated entities that could disadvantage investors or otherwise unduly hinder their ability to trade certain securities. . “
Lawmakers from both parties last week wondered why platforms such as Robinhood Markets Inc. restricted trading in some of the companies whose stock prices shot after being touted on social media.
Read more: GameStop Short Nightmare shows little sign of contamination
Brian Deese, the head of Biden’s National Economic Council, said last week’s stock swings are “properly investigated” by the SEC with a “real focus on protecting private investors and the integrity of the market.”
He suggested the government could try to broaden its oversight, saying, “We are going to take a closer look at broader policy questions related to stock markets.”
The chairpersons of two House and Senate committees promised last week hold hearings on recent stock market upheavals, but no dates have been announced.