Treasury Secretary Janet Yellen convened a meeting with top financial regulators to discuss recent volatility in the financial markets regarding GameStop. Corp.
, a Treasury spokesman confirmed Tuesday night.
Me. Yellen, who chairs a board of regulators that monitors financial stability risks, called for a meeting with officials at the Securities and Exchange Commission, the Federal Reserve, the New York Fed and the Commodity Futures Trading Commission. the treasury, Alexandra LaManna, said. .
“Secretary Yellen believes the integrity of the markets is important and called for a discussion of the recent volatility in financial markets and whether recent activities are in line with investor protection and fair and efficient markets,” LaManna said.
The meeting, which is expected to take place on Thursday, was previously reported by Reuters.
A group of day traders have been flocking to buy shares in GameStop over the past few weeks, raising the price more than ten times and complaining that the frenetic activity was manipulative.
The SEC said Friday it plans to investigate the actions of some brokerage firms that underestimate investors’ ability to trade volatile stocks such as GameStop, the clearest indication that regulators are investigating potential misconduct surrounding the trading mania that overcame stocks such as GameStop, AMC Entertainment. Holdings Inc.
in Novavax Inc.
Robinhood Markets Inc. last week limited investors’ ability to buy shares in GameStop and 12 other companies as it dealt with the impact on its financial needs of an increase in trading.
Analysts expect that the trading mania could potentially lead to stricter SEC rules on brokerage firms to ensure they have sufficient capital during periods of market volatility. Some Capitol Hill lawmakers have also proposed legislative amendments, such as restrictions on short sales and taxes on financial transactions, that could address the situation.
White House press secretary Jen Psaki on Monday questioned the volatility in the trade, saying the SEC was reviewing and monitoring the situation and adding: ‘There is an important set of policy issues that have been raised as a result of the volatility of the past few days, and we think Congress’s attention to these issues is appropriate. ”
GameStop dropped its biggest one-day percentage ever on Tuesday, by $ 135 or 60% to $ 90. That eliminated last week’s profits, although the share of the video game is still 378% higher for the year.
Write to Kate Davidson by [email protected]
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