Warren “The rich treat the stock market like a casino”, Kana “The power of technology to democratize finance”
Republican lawmakers also criticized Robin Hood’s restrictions on individual purchases of gamestops… Comments in support of the hearing
Politics also added to the’game stop situation’, which is called the rebellion of ants (individual investors) in the United States.
Not only the Democrats, but also the influential Republican lawmakers attacked large wall street hedge funds and stock trading companies that blocked private investors from trading gamestops on the side of ants.
On the 28th (local time), according to Fox News and Yahoo News, Senator Elizabeth Warren (Democratic Massachusetts), who is called’the grim reaper of Wall Street’, made a statement that day, “Hedge funds, private equity funds, and wealthy investors who are embarrassed by the gamestop deal In the meantime, we played with the stock market like a private casino, and only others paid for it,” he said.
“It’s been a long time for the Securities and Exchange Commission (SEC) and other financial regulators to wake up and do their jobs,” said Warren. “We’ll get them to do their jobs in the Democrat-led Congress and the new administration.”
Congressman Lo Cana (Democratic California) also made a statement, “This case shows that the power of technology can democratize access to financial institutions,” and “There is a need for more regulation and equality in the market.” Revealed.
“Instead of investing in future technologies that will help us win the 21st century, Wall Street has spent billions of dollars short selling stocks to destroy the company and make employees lose their jobs,” said Kana. “It depends on accessibility and equality across all sectors of the economy.”
In particular, on that day, some stock trading platforms, such as Robin Hood, restricted stock trading such as GameStop, AMC Entertainment, and Blackberry, which recently skyrocketed, which caused anger from the political world.
With these measures, individual investors can only sell the stock, but the fact that hedge funds can still buy and sell both seems to have sparked controversy over a’tilted playground’.
“These measures are good only for Wall Street billionaire traders, and bad for the average person,” said Kana.
Congressman Alexandria Okaciocortes (Democratic New York), a star politician in the progressive camp, tweeted that it was “unacceptable.”
Rep. Okacio Cortes added, “Hedge funds are free to trade, but we need to learn more about the Robin Hood app’s decision to only block individual investors from buying stock.”
A member of the House Financial Services Commission, he said he supports holding a hearing on the matter.
Here, Senator Ted Cruz (Texas), a republican tycoon politician, wrote, “I fully agree”, sharing a tweet from Congressman Okacio Cortes.
Congressman Cruise also indirectly criticized Robin Hood’s actions on the day, citing a tweet posted by Robin Hood in 2016 saying “Let people do business”.
In recent years, individual investors in the US revolted against some hedge funds targeting GameStop short selling, and they united around the online community Reddit’s discussion forum’Wall Streetbets’ to intensively buy the company’s stock and soar the stock price by more than 1,700%.
As a result, hedge funds incur huge losses and declared abandoning the short sale of GameStop stocks, which became a big topic.
/yunhap news