AOC Discusses Approach to Wall Street Evaluation in Light of GameStop Saga
Last Updated: 29 January 2021
The saga surrounding GameStop and a host of other stocks that got boosts from Reddit users earlier this month continues as lawmakers have now stepped into the situation. Alexandria Ocasio-Cortez, the Democrat House of Representatives member, is in the eye of the storm and is not backing down from her fight with brokerage firms.
Time for Reform
This week, Ocasio-Cortez discussed the institutional response to the GameStop short squeeze that led to crippling losses on the balance sheet of New York-based hedge fund Melvin Capital.
Robinhood: The trading app co-founded by Indian-American caught in GameStop storm
Co-founded by Baiju Bhatt, Robinhood is facing calls for a probe from Elon Musk and others for halting trade in GameStop that set off howls of protest from small traders.
File image: Robinhood app s loco on a smartphone. (Image: AP Photo/Patrick Sison)
Robinhood, a stock-trading application, is in the thick of the GameShop controversy after it abruptly blocked clients from purchasing shares of some companies whose stock prices had spiked dramatically and shaken up Wall Street.
This came a day after GameStop’s share price increased 135 percent. Some day traders had gotten together on social news aggregation website Reddit and bought shares and options in large numbers. The online day traders hoped to challenge Wall Street’s dominance. The subsequent rally in the struggling video game retailer s stock and others hit hedge funds, which had heavily shorted these shares, hard.
SEC Issues Vague Threats Against Everyone Involved in the GameStop Stock Saga
Share
Photo: Charlie Neibergall, AP
To sign up for our daily newsletter covering the latest news, features and reviews, head HERE. For a running feed of all our stories, follow us on Twitter HERE. Or you can bookmark the Gizmodo Australia homepage to visit whenever you need a news fix.
The U.S. Securities and Exchange Commission broke its silence Friday morning on the populist investor uprising that has sent the stock price of beleaguered retailer GameStop “to the moon,” warning everyone involved that they are watching… and, for the time being, not doing a whole lot else, it seems.