White House Press Secretary Jen Psaki answers reporter questions about Janet Yellen and the GameStop shares.
Finance Minister Janet Yellen said Thursday that her meeting with top federal regulators later this morning will focus on whether recent market volatility, driven by an army of apostate traders taking up GameStop shares and other sharply shortened companies, is a further action fair.
“We need to understand deeply what happened before we go into action, but we are definitely looking at these events,” Yellen said in an interview on ABC’s “Good Morning America.”
GAMESTOP NAYSAYERS SEE STOCK QUESTIONS WITH LOSS OF $ 6B
Yellen convened a meeting with the heads of the Securities and Exchange Commission, the Federal Reserve, the Federal Reserve Bank of New York and the Commodity Futures Trading Commission after days of wild swings in shares of GameStop, AMC Entertainment and other shares listed on the Reddit has benefited. forum “Wallstreetbets.”
GameStop shares, which stood at about $ 19 in early January, climbed to $ 483 and dropped to $ 61 last week, a price increase so dramatic that TD Ameritrade and Robinhood temporarily placed restrictions on trading in the brick-and-mortar video. game dealer. The share price continued to charge this week and closed above $ 200 on Monday, but fell below $ 100 on Thursday.
RISING INTEREST RATE SPELL PROBLEM FOR STOCK
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 67.37 | -25.40 | -27.38% |
“We really need to make sure our financial markets are functioning properly, efficiently and that investors are protected,” Yellen said. “We are going to discuss these recent events and discuss whether the recent events warrant further action or not.”
The madness increased after home traders put their support behind the stock and bet that stock prices would rise, even if Wall Street short sellers played the exact opposite. Short sellers – who bet on the decline of shares by selling shares they do not own – have lost billions.
But the movements echoed across the broader market last week, with major indices falling on Friday. Analysts say the losses to the big investors who have run out of stocks are forcing them to sell other stocks to raise cash.
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The rollercoaster on the stock market, considered by many to be a war waged by the 99% against wealthy Wall Street titans, has also raised questions among lawmakers across the political path about increased regulatory oversight. and concerns about non-professional investors seemingly blocked from trading. GameStop part for a short period of time.
Robinhood Financial, through which many of the Reddit investors traded, said it restricted trading due to a $ 3 billion demand to support the move and cover the risk. Critics accuse the app of trying to protect Wall Street investors who have shorted the shares.
“Secretary Yellen believes market integrity 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,” Treasury spokeswoman Alexandra LaMann told FOX on Wednesday Business said.