{"id":165454,"date":"2021-01-29T00:43:00","date_gmt":"2021-01-28T21:43:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/capitol-report-lawmakers-demand-action-on-gamestop-saga-robinhood-ban\/"},"modified":"2021-01-29T00:43:00","modified_gmt":"2021-01-28T21:43:00","slug":"capitol-report-lawmakers-demand-action-on-gamestop-saga-robinhood-ban","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/capitol-report-lawmakers-demand-action-on-gamestop-saga-robinhood-ban\/","title":{"rendered":"#Capitol Report: Lawmakers demand action on GameStop saga, Robinhood ban"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4e08d657d3b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4e08d657d3b\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/capitol-report-lawmakers-demand-action-on-gamestop-saga-robinhood-ban\/#Congressional_investigations_and_a_regulatory_push_for_more_disclosure_could_be_forthcoming\" >Congressional investigations and a regulatory push for more disclosure could be forthcoming<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/capitol-report-lawmakers-demand-action-on-gamestop-saga-robinhood-ban\/#Chris_Matthews\" >Chris Matthews<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#Capitol Report: Lawmakers demand action on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop saga, Robinhood ban<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Congressional_investigations_and_a_regulatory_push_for_more_disclosure_could_be_forthcoming\"><\/span>\n  Congressional investigations and a regulatory push for more disclosure could be forthcoming<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000146723\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       Lawmakers and market observers are increasingly calling for congressional inquiries and regulatory actions against those responsible for growing bubbles in individual securities, including GameStop Corp.<br \/>\n        GME,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203755179\/composite\" class=\"negative\">-44.29%<\/bg-quote><span>,<\/span><br \/>\n       and brokers that have halted purchases of such stocks, which posted sharp declines Thursday. <\/p>\n<p> \u201cThe rollercoaster is a very enjoyable ride on the way up, but there\u2019s always a ride down,\u201d said Tom Cook, professor of business law at Georgetown\u2019s McDonough School of Business. \u201cThe saddest thing we\u2019re going to find is that young, unsophisticated investors will jump on this bandwagon based on the volatility and the upside, and they will in many cases come out as losers in a very big way.\u201d <\/p>\n<div class=\"paywall\">\n       Even after declining by more than 44% Thursday, GameStop shares were still up more than 927% during January, a rally that <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have been catalyzed  by <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a>-media campaigns aimed at boosting the shares of troubled companies and harming the professional short sellers who make money betting on companies to fail. <\/p>\n<p>Other stocks that have seen massive gains out of proportion to company financial performance in recent months include  BlackBerry Ltd.<br \/>\n        BB,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/202784246\/composite\" class=\"negative\">-41.63%<\/bg-quote><span>,<\/span><br \/>\n       AMC Entertainment Holdings Inc.<br \/>\n        AMC,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200235402\/composite\" class=\"negative\">-56.63%<\/bg-quote><span>,<\/span><br \/>\n       Bed Bath &amp; Beyond Inc.<br \/>\n        BBBY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209801102\/composite\" class=\"negative\">-36.40%<\/bg-quote><span>,<\/span><br \/>\n       Express Inc.<br \/>\n        EXPR,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210459169\/composite\" class=\"negative\">-50.79%<\/bg-quote><span>,<\/span><br \/>\n       Koss Corp.<br \/>\n        KOSS,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207340503\/composite\" class=\"negative\">-27.66%<\/bg-quote><span>,<\/span><br \/>\n       Naked Brand Group Ltd.<br \/>\n        NAKD,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/204285810\/composite\" class=\"positive\">+0.72%<\/bg-quote><span>,<\/span><br \/>\n        American Airlines Group, Inc.<br \/>\n        AAL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209207041\/composite\" class=\"positive\">+9.30%<\/bg-quote><br \/>\n       Castor Maritime, Inc.<br \/>\n        CTRM,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207102774\/composite\" class=\"positive\">+14.77%<\/bg-quote><span>,<\/span><br \/>\n       Sundial Growers Inc.<br \/>\n        SNDL,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/213489825\/composite\" class=\"positive\">+37.32%<\/bg-quote><span>,<\/span><br \/>\n       Tootsie Roll Industries Inc.<br \/>\n        TR,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200900273\/composite\" class=\"negative\">-9.50%<\/bg-quote><br \/>\n        and American Depository Receipts for Nokia Corp.<br \/>\n        NOK,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/207421390\/composite\" class=\"negative\">-28.40%<\/bg-quote><br \/>\n       and Trivago N.V.<br \/>\n        TRVG,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/205613957\/composite\" class=\"negative\">-22.26%<\/bg-quote><span>.<\/span>\n      <\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Online brokerage Robinhood banned the purchase of new shares of all the above companies Thursday, following a decision by rival TD Ameritrade to restrict trading on GameStop and AMC shares Wednesday. <\/p>\n<p> Rep. Ro Khanna, a California Democrat who sits on the House Oversight Committee, told MarketWatch that the episode reveals deep flaws in the U.S. financial services industry that require investigations by Congress, regulatory action and potentially new legislation. <\/p>\n<p>\u201cWe need to regulate the hedge-fund model,\u201d he said, agreeing with the criticisms of Wall Street that many individual investors have given as reason for propping up stocks with large short interests. \u201cThe model is, we make our money by trying to see companies go under. We\u2019re looking for the losers of society and to facilitate their demise.\u201d <\/p>\n<p>Khanna also proposed the imposition of a financial transactions tax on large, speculative trades as a means to dampen bubbles in stocks like GameStop.<\/p>\n<p>Sen. Elizabeth Warren said in a statement Wednesday that complaints from professional money managers that the rise of these stocks has unfairly stuck them with heavy losses was the height of hypocrisy. <\/p>\n<p>\u201cFor years, the same hedge funds, private-equity firms, and wealthy investors dismayed by the GameStop trades have treated the stock market like their own personal casino while everyone else pays the price,\u201d the Massachusetts Democrat said. \u201cIt\u2019s long past time for the SEC and other financial regulators to wake up and do their jobs.\u201d <\/p>\n<p>But it\u2019s not clear that the narrative of individual investors leveraging social media to beat Wall Street is accurate, according to Dr. Richard Smith, CEO of the Foundation for the Study of Cycles. <\/p>\n<p>\u201cI guarantee you that if we were privy to all the data on who profited the most from these bubbles, it\u2019s not going to be the guys on WallStreetBets,\u201d he said, referring to <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reddit.com\/r\/wallstreetbets\/\" class=\"icon none\">the Reddit group<\/a> that has promoted GameStop and other stocks. \u201cIf you look at the unwinding of the trade over the next year, you\u2019re not going to see that a bunch of retail investors picked the pockets of Wall Street.\u201d <\/p>\n<p>The view that many professional investors have had a hand in pumping up the value of GameStop and other company shares is bolstered by the fact that many  stocks in question were very heavily traded Thursday, according to FactSet, even as Robinhood and other brokers blocked purchases of the stocks.<\/p>\n<p>\u201cI definitely think there needs to be a look at the equality of access,\u201d Khanna said. \u201cThere must be clear regulations for when they can shut down so that there\u2019s not the perception that they\u2019re somehow rigging things on behalf of institutional investors.\u201d <\/p>\n<p>After the market closed Thursday afternoon, Robinhood <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.robinhood.com\/news\/2021\/1\/28\/keeping-customers-informed-through-market-volatility\" class=\"icon none\">responded to criticisms in a another blog post<\/a>, saying that their decision was in part based on its need to satisfy regulatory requirements, \u201cincluding SEC net capital obligations and clearinghouse deposits.\u201d <\/p>\n<p>The company said it would begin allowing \u201climited\u201d buys of the aforementioned securities. \u201cTo be clear this was a risk-management decision, and was not made on the direction of the market makers we route to,\u201d the post read.<\/p>\n<p>Khanna\u2019s colleagues on both sides of the aisle agree that there should be scrutiny of brokers\u2019 decisions to block trades on particular stocks, with North Carolina\u2019s Rep. Patrick McHenry, the top Republican on the House Financial Services Committee, telling Punchbowl <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> on Thursday that he will request a hearing on whether \u201cthere has been market manipulation, fraud or any pump-and-dump schemes.\u201d <\/p>\n<p>Even the very conservative Republican Sen. Ted Cruz of Texas agreed with progressive Democratic Rep. Alexandria Ocasio-Cortez that Robinhood\u2019s decision should be investigated by Congress. <\/p>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetTweet\n          inline\n    scope-web|mobileapps\n  article__inset\n        article__inset--type-InsetTweet\n          article__inset--inline\n  \"><\/p>\n<div class=\"dynamic-inset-container article__inset__dynamic\">\n<style>\n            iframe.twitter-tweet {\n                width: 100% !important;\n            }\n        <\/style>\n<blockquote class=\"twitter-tweet\" lang=\"en\"><p>\n            <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/tedcruz\/status\/1354833603943931905\"><\/a>\n            <\/p><\/blockquote>\n<p>        <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/div>\n<\/p><\/div>\n<p>       Meanwhile, Democratic Sen. Sherrod Brown of Ohio, the incoming Chairman of the Senate Banking Committee, said in a tweet Thursday that he will hold a hearing \u201ccurrent state of the stock market.\u201d<\/p>\n<p>Smith argued that the SEC could move immediately to force brokers to disclose more information on what percentage of their customers make and lose money, particularly on more speculative instruments like stock options. Such regulations already exist in the European Union. <\/p>\n<p>\u201cThe regulatory response that I would really hope to see would be more transparency about what\u2019s going on behind the scenes structurally in the markets,\u201d he said. \u201cI believe that one of the drivers is the increasingly intimate relationship between retail brokers and market makers,\u201d as brokers increasingly make their money from payments by market makers to direct trades their way. <\/p>\n<p>There is also the possibility of enforcement actions for market manipulation, according to Alma Angotti, a managing director at the consultancy Guidehouse, who formerly held senior enforcement positions at the Securities and Exchange Commission and the Financial Industry Regulatory Authority. <\/p>\n<p>As the SEC and Congress investigate the origins of the bubbles in GameStop and other stocks, if they find that investors intentionally lied about a company to draw more buyers, the SEC could move to force that person or people to disgorge their gains and pay a penalty, Angotti told MarketWatch.<\/p>\n<p>\u201cThe first thing they\u2019re going to do is investigate to make sure there\u2019s no manipulation,\u201d she said. \u201cI\u2019ve seen the progression of market manipulation from boiler rooms to online bulletin boards and now you\u2019ve got social media.\u201d<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Chris Matthews\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Chris_Matthews\"><\/span>Chris Matthews<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D23D232DB0DC%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;#Capitol Report: Lawmakers demand action on GameStop saga, Robinhood ban&#8221; Congressional investigations and a regulatory push for more disclosure could be forthcoming Lawmakers and market observers are increasingly calling for congressional inquiries and regulatory actions against those responsible for growing bubbles in individual securities, including GameStop Corp. GME, -44.29%, and brokers that have halted purchases&#8230;<\/p>\n","protected":false},"author":1,"featured_media":165455,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-165454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/165454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=165454"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/165454\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/165455"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=165454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=165454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=165454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}