The House Financial Services and Senate Banking committees — which have oversight authority of the Securities and Exchange Commission — plan to hold hearings on the recent market instability created by the Reddit GameStop squeeze.
Sen. Sherrod Brown, D-Ohio, incoming chairman of the Senate Banking Committee, says he intends to hold a hearing on the current state of the stock market. “People on Wall Street only care about the rules when they’re the ones getting hurt,” Brown said in a statement. “American workers have known for years the Wall Street system is broken — they’ve been paying the price. It’s time for the SEC and Congress to make the economy work for everyone, not just Wall Street.”
Rep. Maxine Waters, D-Calif., chairwoman of the House Financial Services Committee, said Monday that she’d hold a Feb. 18 hearing titled, “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide.”
Waters said in a Thursday statement that “Hedge funds have a long history of predatory conduct and that conduct is entirely indefensible. Private funds preying on the pension funds of hard working Americans must be stopped.”
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Waters’ hearing will examine “the recent activity around GameStop stock and other impacted stocks with a focus on short selling, online trading platforms, gamification and their systemic impact on our capital markets and retail investors.”
The SEC said Friday that it is “closely monitoring and evaluating the extreme price volatility of certain stocks’ trading prices over the past several days.”