Treasury Secretary Janet Yellen will convene officials from top U.S. regulatory agencies to discuss recent market volatility driven by so-called meme stocks.
Security and Exchange Commission (SEC) officials will present Secretary Janet Yellen, as well as representatives from the Commodity Futures Trading Commission and Federal Reserve, with the findings of their market volatility analysis, Politico reported. The meeting, expected to take place Thursday, was triggered by recent surges of stock prices, of companies including Gamestop and AMC Entertainment, manufactured by retail investors collaborating on online forums.
“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,” the Treasury Department said in a statement, according to Politico. (RELATED: ‘Spill The Beans’: Elon Musk Questions Robinhood CEO On Halting GameStop Trades)
Vice President Kamala Harris and President Joe Biden meet with Treasury Sec. Janet Yellen in the Oval Office on Friday. (Anna Moneymaker/Pool/Getty Images)
Amid the increased volatility last week, financial services company Robinhood, the broker for many retail investors, restricted trading meme stocks. Republican and Democratic elected officials joined together to criticize Robinhood’s decision while the Securities and Exchange Commission said Friday that it was closely monitoring the situation and would protect investors.
But Robinhood said in a statement Tuesday that it restricted trading because a financial intermediary, which processes trades asked for $3 billion to protect against increased volatility.
“There is no reason why the greatest financial system the world has ever seen cannot settle trades in real time,” Robinhood said. “Doing so would greatly mitigate the risk that such processing poses.”
The Treasury Department didn’t immediately respond to a request for comment.
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