Janet Yellen to meet with regulators on GameStop, market volatility


Treasury Secretary Janet Yellen called a meeting with leading financial regulators to discuss recent financial market volatility linked to GameStop Corp.

, a spokesperson for the Treasury confirmed on Tuesday evening.

Ms Yellen, who chairs a board of regulators that oversees financial stability risks, asked for a meeting with officials from the Securities and Exchange Commission, Federal Reserve, New York Fed and Commodity Futures Trading Commission, Treasury spokeswoman Alexandra LaManna said. .

“Secretary Yellen believes market integrity is important and called for a discussion of recent financial market volatility and whether recent activity is consistent with protecting investors and fair and efficient markets,” said Ms. LaManna.

The meeting, which is expected to take place as early as Thursday, has already been reported by Reuters.

A group of day traders have rallied in recent weeks to buy GameStop stock, pushing the price up more than 10 times and sparking complaints that the frenetic activity was manipulative.

The SEC said on Friday it planned to take a close look at the shares of some brokerage firms that were restricting investors’ ability to trade volatile stocks such as GameStop, the clearest indication that regulators were examining possible misconduct around. the commercial mania that overwhelmed stocks such as GameStop, AMC Entertainment Holdings Inc.

and Novavax Inc.

Robinhood Markets Inc. restricted the ability of investors to buy shares of GameStop and 12 other companies last week as it addressed the impact on its financial needs of a surge in trading.

Analysts expect the trading mania could lead to stricter SEC rules on brokerage firms to ensure they have sufficient capital during times of market volatility. Some Capitol Hill lawmakers have also proposed legislative changes, such as restrictions on short sales and financial transaction taxes, that could remedy the situation.

Asked about transaction volatility on Monday, White House press secretary Jen Psaki said the SEC was reviewing and monitoring the situation, adding: “There is an important set of policy issues that have been raised in due to market volatility in recent days, and we believe congressional attention to these issues is appropriate.

GameStop saw its biggest single-day percentage drop on Tuesday, dropping $ 135, or 60%, to $ 90. That wiped out last week’s gains, although shares of the video game company are still up 378% for the year.

Write to Kate Davidson at [email protected]

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