After amateur stock market slingers against large hedge funds that rocked Wall Street last week, Janet Yellen requested a meeting with the Securities and Exchange Commission (SEC), the Federal Reserve and the Commodities Futures Trading Commission (federal agency responsible for regulating stock exchanges), according to the statement. Elected officials are also calling for an investigation, while the GameStop action, after having soared last week, lost 50% of its value yesterday Tuesday.
US Treasury Secretary Janet Yellen has requested a meeting with financial regulators to discuss recent "market volatility," according to a statement released Tuesday evening.
"Secretary of State Yellen believes market integrity is important and has called for a discussion of recent financial market volatility and the compatibility of recent activities with investor protection and fair and efficient markets," the statement said. .
SEC, Fed, CFTC solicited by Janet Yellen
Janet Yellen has requested a meeting with the Securities and Exchange Commission (SEC), the Federal Reserve and the Commodities Futures Trading Commission (federal agency responsible for the regulation of stock exchanges), according to the statement.
Republicans and Democrats have been calling for a review of trade regulations for several days, following a sling by stock marketers against large hedge funds, which rocked Wall Street last week.
The "democratization of finance for all" has come to an end
These investors, meeting in particular on a forum on the Reddit site, had launched a fierce battle against large investment funds having bet down on poorly performing companies such as the video game store chain GameStop or that of movie theaters. AMC, by practicing short selling.
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This process, which makes it possible to bet on the fall in the price of a share, has led to the creation of applications for private investors, such as Robinhood, which claims to "democratize finance for all" and has limited the trading of these securities. last week to stem the rout.
"Manipulations", "special effects" ... elected officials demand an investigation by the SEC
Progressive U.S. Senators Bernie Sanders and Elizabeth Warren this weekend called for action against what they see as hedge fund abuse.
“We need an SEC investigation,” Ms. Warren told CNN on Sunday. "It's a rigged game, and it's a bunch of players who come and manipulate the market."
Bernie Sanders told ABC Channel that it was necessary to "take a very close look at the type of illegal activity and the outrageous behavior of hedge funds and other Wall Street players."
GameStop's course dives after the outbreak
The SEC assured to monitor the situation.
After rising over 400% last week, GameStop shares fell on Tuesday, dropping nearly 50% earlier in the day and taking their two-day drop to over 65%, with AMC also down.
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