Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

US Treasury head Yellen to meet with major financial regulators to probe market ‘volatility’ after GameStop craze

US Treasury head Yellen to meet with major financial regulators to probe market ‘volatility’ after GameStop craze

US Treasury Secretary Janet Yellen will soon meet with top financial regulators to review volatility triggered after amateur traders drove GameStop’s share price to soaring heights in a bid to punish short sellers on Wall Street.
Yellen will convene the sit-down sometime this week, where she’ll meet with officials from the Securities and Exchange Commission (SEC), the Federal Reserve and its New York branch, as well as the Commodity Futures Trading Commission, the Wall Street Journal reported on Tuesday, citing Treasury spokeswoman Alexandra LaManna.

“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,” LaManna told the Journal.

The meeting is expected to happen as early as Thursday.

The Treasury secretary reportedly felt the need to obtain permission from ethics lawyers before calling the meeting, according to Reuters, as she previously received a whopping $810,000 in speaking fees from one of the Wall Street hedge funds on the receiving end of the GameStop short squeeze, Citadel LLC. Those payments were just a fraction of the $7.2 million Yellen raked in from a who’s-who of corporations, banks and investment firms since 2019, among them Goldman Sachs, Google, Citi, and Credit Suisse.

The GameStop debacle kicked off quietly over 2020, but exploded into the headlines last week as a horde of online investors – many hailing from Reddit’s WallStreetBets forum – drove several companies’ stock prices through the roof. The amateur traders noticed major hedge funds were heavily short-selling certain shares, effectively betting on those firms to fail, launching a frenzied buying campaign that imposed billions in losses on the funds, chief among them Citadel and Melvin Capital.

GameStop’s share price – as well as that of other shorted companies that were inflated during the buying spree, such as Nokia, BlackBerry and AMC – has since collapsed, tumbling 60 percent on Tuesday alone, though similar grassroots efforts have already begun to take hold in the metals markets.

White House press secretary Jen Psaki hinted that US regulators could soon address the volatility issues, telling reporters on Monday the SEC is “reviewing and monitoring the situation,” and that the GameStop mania had raised an “important set of policy issues.” She declined to say what actions might be taken, however.

The SEC itself also suggested last Friday that it would look closely at the actions of some brokerage firms, such as trading platform Robinhood, which restricted purchases of the inflated stocks, likely helping to quell the price surge and reign in the crippling losses inflicted on Wall Street.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
×