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The White House remains out of the Wall Street chaos sparked by a Reddit group.
Press secretary Jen Psaki was strewn with questions she refused to answer directly about market volatility involving a Reddit group called WallStreetBets coming together to get short sellers out of their positions by buying shares in video game retailer GameStop. and other flailing companies.
The Reddit group has temporarily gone private. The Robinhood trading app and online brokerage Interactive Brokers have restricted trading in certain securities due to recent volatility in a number of stocks, which has sparked controversy.
YELLEN RECEIVED $ 800B FROM THE HEDGE FUND IN GAMESTOP CONTROVERSY, WHICH DOES NOT COMMIT TO RECUSAL
“With all the volatility surrounding Wall Street and GameStop, what is the Biden administration doing to protect the average US investor if there is a potential market correction?” CNN reporter Kaitlin Collins asked.
Psaki referred her to an SEC statement that the commission was “monitoring current market volatility.”
“Beyond just monitoring, has he had conversations with business leaders about what’s going on?” Collins pressed.
“He is frequently briefed by his economics team,” Psaki said. “But I have nothing more to read for you.”
Psaki again highlighted the SEC statement when another correspondent brought up the controversy.
GAMESTOP STOCK SURGING CREATING CHAOS FOR HEDGE FUNDS
A third reporter asked Psaki if Treasury Secretary Janet Yellen would recuse herself from advising the president on GameStop, given that she received around $ 810,000 in speaking fees from Citadel, the hedge fund that bailed out the one of the biggest losers in the Gamestop frenzy.
Citadel and Point72 injected nearly $ 3 billion into Melvin Capital, which suffered massive losses after betting against the inflated stock. The White House said Wednesday that Yellen was monitoring the situation.
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GameStop stock rose from under $ 20 earlier to close around $ 350 on Wednesday. The stock was even crazier Thursday: the stock hovered between $ 112 and $ 483. The stock closed at $ 193.60, down more than 44% – but after hours of trading the frenzy resumed with the stock rising more than 50% and approaching $ 300 per share.
Sam Dorman of Fox News contributed to this report.
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