Minister of Finance Janet Yellen
Janet Louise YellenOn The Money: Biden Calls Dems, Insists Big COVID Bill | Biden’s SEC pick sidelined as GameStop drama unfolds | Bezos Steps Down as Amazon CEO Senate Democrats Take First Step Toward Big COVID-19 Bill An Official’s Advice to Incoming Government: Listen to KISS MORE will meet with financial regulatory groups this week to address recent stock spikes in GameStop and other commodities after armchair investors on Reddit sparked surprise fluctuations in the market.
The meeting will review the Securities and Exchange Commission (SEC) findings on the investments and will include the Federal Reserve, the New York Fed and the Commodity Futures Trading Commission.
Secretary Yellen believes that the integrity of markets is important and has called for a discussion of recent volatility in financial markets and whether recent activities are consistent with investor protection and fair and efficient markets, said spokesman Alexandra LaManna. the Treasury Department Wednesday at The Hill.
News of the meeting comes as lawmakers raise the alarm about the impact of the fluctuations. Bipartisan members of Congress expressed concern that Robinhood Financial, with which many of the Reddit investors made their trades, stopped trading GameStop, AMC Entertainment, and other stocks after the price of their shares skyrocketed.
Robinhood said it restricted trading due to a demand for $ 3 billion to support the moves, although critics planned the decision as an attempt to protect Wall Street investors who had shorted the stock.
The sharp rise in shares appears to be reversing. GameStop saw its stock price skyrocket to a high of $ 483, but closed 60 percent on Tuesday at $ 90.
Proponents of the wave called it a win for small investors on Wall Street, but market observers have warned that such swings could affect confidence in the stock market.
“Extreme stock price volatility can expose investors to rapid and severe losses and undermine market confidence,” the SEC said last week.
The news of the meeting with Yellen was first reported by Reuters.