Biden Administration Is ‘Monitoring’ Gamestop Stock Trading, White House Says

Fox Business

Anders Hagstrom White House Correspondent
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U.S. Treasury Secretary Janet Yellen is “monitoring” GameStop stock trading after Redditors surged the company’s pricing, White House Press Secretary Jen Psaki said Wednesday.

Reddit communities jumped on GameStop stocks and caused a subsequent surge in value Tuesday after trading company Melvin Capital attempted to short the video game company’s stock pricing. The incident has caused some to call for an SEC investigation into the Reddit pile-on, with NASDAQ CEO Adena Friedman calling for regulators to “manage the situation.”

“Our economic team including Secretary Yellen and others are monitoring the situation,” Psaki told reporters Wednesday. “It’s a good reminder, though, that the stock market isn’t the only measure of the health of our economy.” (RELATED: New York Stock Exchange To Delist Major Chinese Telecom Companies, Citing Trump’s Executive Order)

A number of Redditors who jumped on the opportunity early have reported soaring gains, turning tens of thousands of dollars in investment into tens of millions in returns. The SEC has yet to weigh in on the trading.

“As we look at these new technologies that are available to anyone, including investors, I think it’s also important for regulators to understand that manipulation is manipulation, whether it’s happening through a new technology medium or it’s happening through traditional mail,” Friedman told CNBC on Wednesday. “I think it’s just a matter of making sure we understand what the behavior is, what’s underpinning the behavior, and working appropriately with regulators to manage the situation.”