Finance Minister Janet Yellen convened a meeting with key financial regulators to discuss recent financial market volatility related to GameStop Corp.
, a Treasury spokeswoman confirmed Tuesday evening.
Ms. Yellen, who chairs a board of supervisors that monitors financial stability risks, has asked to meet with officials from the Securities and Exchange Commission, the Federal Reserve, the New York Fed and the Commodity Futures Trading Commission, Treasury said spokeswoman Alexandra LaManna. .
“Secretary Yellen believes the integrity of markets is important and has called 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 Ms. LaManna.
The meeting, which is expected to take place on Thursday, was previously reported by Reuters.
A group of day traders gathered in recent weeks to buy shares of GameStop, raising the price more than 10 times and raising complaints that the hectic activity was manipulative.
The SEC said Friday that it planned to take the actions of some brokerage firms that have limited investors’ ability to trade volatile stocks, such as GameStop, the clearest indication that regulators have potential misconduct surrounding the trading mania affecting stocks like GameStop, AMC Entertainment flooded Holdings Inc.
and Novavax Inc.
Robinhood Markets Inc. Last week limited investors’ ability to buy shares in GameStop and 12 other companies as it addressed the impact on financial needs of a surge in trading.
Analysts expect the trading mania could potentially lead to stricter SEC rules for brokerage firms to ensure they have adequate capital during periods of market volatility. Some lawmakers on Capitol Hill have also proposed legislative changes, such as restrictions on short selling and taxes on financial transactions, that could remedy the situation.
When asked about trade volatility on Monday, White House press secretary Jen Psaki said the SEC is reviewing and monitoring the situation, adding, “There is an important set of policy issues that have been raised as a result of the market volatility of in recent days, and we think Congress’s attention to these issues is appropriate. ”
GameStop saw its largest one-day percentage drop ever on Tuesday, dropping $ 135, or 60%, to $ 90. That wiped out last week’s gains, though the video game company’s stock is still 378% this year. have risen.
Write to Kate Davidson at [email protected]
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