The White House remains out of the Wall Street chaos unleashed by a Reddit group.
Press Secretary Jen Psaki was filled with questions she refused to answer directly about the volatility in the market that brought together a Reddit group called WallStreetBets to push short sellers out of their positions by buying up stock at video game retailer GameStop and other swinging companies.
The Reddit group has temporarily become private. The trading app Robinhood and the online broker Interactive Brokers have restricted trading of certain securities due to the recent volatility in a number of stocks, which has sparked controversy.
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“Given all the volatility surrounding Wall Street and GameStop, what is the Biden government doing to protect the average US investor if possible, possibly a major correction in the market?” CNN reporter Kaitlin Collins asked.
Psaki referred her to a statement from the SEC, which said the commission was “monitoring ongoing market volatility”.
“Besides just monitoring it, did he have any discussions with economic officials about what’s going on?” Collins printed.
“He is regularly informed by his economic team,” Psaki said. “But I have nothing more to read to you.”
Psaki again pointed to the SEC statement when another correspondent addressed the controversy.
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A third reporter asked Psaki if Janet Yellen, treasurer of the Treasury, did not want to advise her to the president about GameStop, as she received about 810,000 speaking fees from Citadel, the hedge fund that is one of the main losers in the Gamestop. madness saved.
Both Citadel and Point72 invested nearly $ 3 billion in Melvin Capital, which suffered huge losses after betting on the inflated share. The White House said Wednesday that Yellen is monitoring the situation.
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GameStop shares earlier rose below $ 20 and closed around $ 350 on Wednesday. The action was even wilder on Thursday: the stock swung between $ 112 and $ 483. The stock closed at $ 193.60, down more than 44%. In the hours of trading, however, the madness resumed with a share of more than 50% and $ 300 per share.
Fox News’ Sam Dorman contributed to this report.