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White House press secretary Jen Psaki answers reporters’ questions about Janet Yellen and the GameStop stock spike.
Representative Alexandria Ocasio-Cortez and Senator Elizabeth Warren slammed hedge funds and investors who criticized Reddit investors leading the GameStop astronomical rally this week, accusing them of treating the stock market “like their own casino” for years .
GameStop shares have climbed more than 700% in the past four days, a price spike so dramatic that TD Ameritrade and Charles Schwab both imposed trading restrictions on the brick-and-mortar video game retailer.
| Teleprinter | security | Latest | Change | % Change |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 369.75 | +24.76 | + 7.18% |
“For years the same hedge funds, private equity firms and high net worth investors appalled by GameStop transactions have treated the stock market like their own personal casino when everyone is paying the price,” said Warren, D- Mass., In a press release. Wednesday.
Warren, a 2020 presidential candidate and leading advocate for tough laws to bring Wall Street and the private equity industry under control, has renewed his efforts to have the Securities and Exchange Commission more closely regulate the market.
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“It’s high time the SEC and other financial regulators woke up and do their jobs – and with a new administration and Democrats running Congress, I intend to make sure they do,” she declared.
In a statement after the markets closed on Wednesday, Allison Herren Lee, acting chairman of the SEC, said the agency “is actively monitoring current market volatility in the options and equity markets” and is working with regulators to “assess the situation and review the situation. the activities of regulated entities, financial intermediaries and other market participants.”
Federal Reserve Chairman Jerome Powell, speaking at a press conference scheduled for Wednesday, declined to comment on the matter.
White House press secretary Jen Psaki told reporters in an afternoon briefing that Treasury Secretary Janet Yellen was monitoring the situation, adding that “the stock market is not the only measure of the health of our economy. “
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Ocasio-Cortez, DN.Y., echoed Warren’s post, tweeting Wednesday: “I have to admit it’s really something to see Wall Streeters with a long history of treating our economy like a casino complaining. a poster board also treating the market as a casino. “
GameStock was popular in the Reddit “Wallstreetbets” forum, where an army of home traders put their support behind the stock, betting the stock price would rise even if Wall Street short sellers predicted the exact opposite. Short sellers – who bet on falling stocks by selling stocks they don’t own – have lost billions this week.
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