Sen. Sherrod Brown (D-OH), the inbound chair of the Senate Banking Committee, announced Thursday that he plans to hold a hearing on the “existing state of the stock market” in the wake of extraordinary volatility around GameStop, AMC, and other stocks.
The volatility has been most pronounced around the retailer GameStop, which has more than quadrupled in value over the previous week in the face of a Reddit-organized project to enhance the business’s worth. But with a number of markets obstructing further purchases of the stock to stem hedge fund losses, the event has actually stimulated a broader discussion about institutional predisposition in US financial markets.
American workers have actually understood for years the Wall Street system is broken– they have actually been paying the price,” Brown said in a statement Thursday.
NEW: Senate Banking Committee will hold a hearing on “the current state of the stock market,” incoming Chairman Sherrod Brown, a Democrat from Ohio, stated in a statement. pic.twitter.com/CX1zj8HHVo
— Daniel Flatley (@DanielPFlatley) January 28,2021
As of publication, it’s unclear when the hearing will take place, however legislators from both chambers have actually expressed a need for additional examination.
Rep. Maxine Waters (D-CA), the chair of the House Financial Services committee, likewise promised to investigate the activity. “I will convene a hearing to examine current activity around GameStop stock and other impacted stocks,” Waters stated in a declaration, “with a concentrate on short selling, online trading platforms, gamification and their systemic effect on our capital markets and retail investors.”
Rep. Ro Khanna (D-CA) put out a declaration stating, “We’re done letting hedge fund billionaires deal with the stock market like their personal playground, then taking their ball house as soon as they lose,” he continued.
On Wednesday, Sen. Elizabeth Warren (D-MA) likewise required more policy of the monetary market. “It’s long past time for the SEC and other monetary regulators to wake up and do their tasks– and with a brand-new administration and Democrats running Congress, I intend to make sure they do,” she stated.
Update 4: 29 PM ET: Added statement from Rep. Waters.