Former SEC Chairman Harvey Pitt discusses the GameStop stock frenzy, which involves investing in retail and Tesla in bitcoin.
As GameStop and other Reddit favorite stocks remain severely short and subject to large fluctuations, the Securities and Exchange Commission announced on Tuesday that it must take steps to speed up the handling of sins by senior officials by giving them more legal institutions.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 50.31 | -9.69 | -16.15% |
“This will enable senior officials to exercise the delegated authority of the Commission to authorize staff to summon documents and give affidavits. This delegation of authority will enable investigators to act more quickly to detect and stop ongoing fraud, preserve assets and protect vulnerable investors, “said Acting Chairman Allison Herren Lee in a statement.
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| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 5.50 | -0.68 | -11.00% |
| BBBY | BED BATH & BEYOND INC. | 27.12 | +0.85 | + 3.24% |
| BB | BLACKBERRY LIMITED | 13.43 | -0.33 | -2.40% |
Although the SEC does not name Reddit, GameStop or others by name, he noted that the move “helps to ensure that investigators can work effectively to protect investors in an era in which the pace of fraud – such as the pace of markets” – ever is faster. ”
The SEC did not respond to FOX Business’ request for further clarification.
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Extreme trading in stocks such as GameStop, Bed Bath & Beyond, AMC and others, prompted the popular investment app Robinhood last month to restrict the trading of certain names and send the retail community into their own frenzy.
It also increased the pressure on financial regulators, and even became a daily question during White House press conferences.
Just last week, US Treasury Secretary Janet Yellen convened a meeting with the SEC and the heads of the Federal Reserve, the New York Federal Reserve and the CFTC at short notice.
After the meeting, Yellen’s team said in a statement.
The SEC and CFTC are investigating whether trading practices are in line with investor protection and fair and efficient markets. Secretary Yellen believes it is essential to maintain the integrity of these markets and ensure investor protection. ”
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Former SEC Chairman Harvey Pitt agreed that reviewing trade practices is a good first step, but noted that the challenges facing regulators in such cases.
“Unless there is clear evidence that someone is deliberately trying to influence the price of a stock, there is very little the government can do about it,” he told FOX Business.
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Robinhood CEO Vlad Tenev, who has defended the company’s defense to restrict trade in certain names, will appear before Congress on February 18 to ask questions about exactly what has happened over the past few weeks.
He also advocates the adoption of a real-time settlement system.
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