Treasury Secretary Janet Yellen Plans to Investigate GameStop Surge
Last weeks market experienced massive volatility in GameStop and other stocks as retail investors flooded in. Yellen plans to meet with the heads of the Securities and Exchange Commission, the Federal Reserve, the Federal Reserve Bank of New York and the Commodity Futures Trading Commission.
Yellen consulted ethics lawyers to determine if it was within her duties to pursue a discussion with regulators.
“Secretary Yellen believes the integrity of markets is important and has asked for a discussion of recent volatility in financial markets and whether recent activities are consistent with investor protection and fair and efficient markets,” Treasury spokeswoman Alexandra LaManna said.
The massive rally cost hedge funds that had short positions an estimated $19 billion in January. Several stock brokerages restricted the trading of stocks that were being driven up by retails investors, which brought massive unrest to social media.