Progressive lawmakers are reacting to the Reddit-led surge in GameStop stock sales — and Wall Street’s response — to push for more oversight on financial institutions.
“Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino,” Rep. Alexandria Ocasio-Cortez, D-N.Y., tweeted Wednesday. “Anyways, Tax the Rich,” she added.
Users of the Reddit message board r/WallStreetBets rallied this week to boost the struggling video game retailer and other companies’ stocks after several hedge funds took short positions on the stocks. The effort, which sparked backlash from Wall Street firms who lost huge sums as a result, hit a roadblock on Thursday morning after the personal trading app Robinhood stopped allowing users to buy those stocks.
Called the Robinhood’s decision “unacceptable,” Ocasio-Cortez said she would “support a hearing if necessary” to investigate the issue.
“This is a serious matter,” she said. “Committee investigators should examine any retail services freezing stock purchases in the course of potential investigations – especially those allowing sales, but freezing purchases.”
Some conservatives expressed similar concerns. Sen. Mike Lee, R-Utah, tweeted, “We should investigate” Robinhood’s actions
Rep. Rashida Tlaib, a member of the progressive group known as “The Squad” that also includes Ocasio-Cortez, also called for a congressional investigation into Robinhood’s “market manipulation,” not the Reddit-inspired stock buyers.
“This is beyond absurd. @FSCDems need to have a hearing on Robinhood’s market manipulation,” the Michigan Democrat tweeted, referring to the House Financial Services Committee. The company is “blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who’ve used the stock market as a casino for decades,” Tlaib tweeted.
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