Senate to hold hearing on the stock market after Reddit GameStop squeeze

Sen. Sherrod Brown (D-OH), the incoming chair of the Senate Banking Committee, introduced Thursday that he plans to carry a listening to on the “present state of the inventory market” within the wake of unprecedented volatility round GameStop, AMC, and different shares.

The volatility has been most pronounced across the retailer GameStop, which has greater than quadrupled in worth over the previous week within the face of a Reddit-organized marketing campaign to spice up the corporate’s worth. However with a number of markets blocking additional purchases of the inventory to stem hedge fund losses, the incident has sparked a broader dialog about institutional bias in US monetary markets.

“Individuals on Wall Road solely care in regards to the guidelines once they’re those getting damage. American staff have recognized for years the Wall Road system is damaged — they’ve been paying the worth,” Brown mentioned in a press release Thursday. “It’s time for the SEC and Congress to make the financial system work for everybody, not simply Wall Road. That’s why, as incoming Chair of the Senate Banking and Housing Committee I plan to carry a listening to to try this necessary work.”

As of publication, it’s unclear when the listening to will happen, however lawmakers from each chambers have expressed a necessity for additional investigation. Earlier Thursday, Rep. Alexandria Ocasio-Cortez (D-NY) called on Congress to investigate the Robinhood app, calling the actions in opposition to GameStop “unacceptable.”

Different progressives have adopted go well with. Rep. Ro Khanna (D-CA) put out a press release saying, “We’re completed letting hedge fund billionaires deal with the inventory market like their private playground, then taking their ball dwelling as quickly as they lose,” he continued. “We want extra regulation and equality within the markets.”

On Wednesday, Sen. Elizabeth Warren (D-MA) additionally known as for additional regulation of the monetary business. “It’s gone time for the SEC and different monetary regulators to get up and do their jobs — and with a brand new administration and Democrats working Congress, I intend to ensure they do,” she mentioned.

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