US

Josh Hawley Calls for Probe of Tech Platforms Involved in GameStop Mania

Republican Senator Josh Hawley has known as for an investigation into doable “collusion” between tech platforms and Wall Street hedge funds after retail traders have been barred from opening new positions in GameStop, the online game retailer, after they sought to squeeze short-sellers.

Speaking to Fox News on Tuesday, Hawley (R-MO) mentioned officers needed to “get all of the facts.” He mentioned buying and selling app Robinhood’s resolution to dam new positions in GameStop regarded “like collusion” with large hedge funds damage by the rise in the retailer’s inventory worth.

He added that it will be a “big, big problem” if a probe have been to search out that tech platforms had been “acting in concert” with Wall Street gamers towards retail traders organized on the r/WallStreetBets subreddit.

Appearing on American Reports yesterday, Hawley mentioned: “We do have to absolutely get all of the facts, which is one of the reasons I haven’t called for any new steps by Congress yet, because I think we need to figure out exactly what has gone on here.

Republican Senator Josh Hawley
Sen. Josh Hawley (R-MO) stands in the House Chamber throughout a reconvening of a joint session of Congress on January 06, 2021 in Washington, DC.
Win McNamee/Getty Images

“But what we do know at this point is we definitely see these tech platforms—Robinhood, Discord—we see them reacting in what looks like collusion with the positions of the hedge funds and the banks, and those are some of the facts we need to get.

“I can inform you if these tech platforms are performing in live performance with these large hedge funds to guard these entities and shut down day merchants and retail traders, that is an enormous, large downside. And I feel it must be known as out.”

The Missouri Republican later added there needed to be assurance that moves to shut off the opening of new positions in GameStop and the chat forums of retail traders were taken within the law.

“We need to guarantee that all of that was carried out in accordance with the legislation, and that there is one set of guidelines that everyone is taking part in by pretty,” he mentioned.

Newsweek has contacted Robinhood and Discord for remark. This article can be up to date with any responses.

Senator Hawley known as for an issue into the GameStop saga after the House Financial Services Committee revealed on Monday that it deliberate to carry a February 18 listening to on the occasions surrounding the squeeze on hedge funds with dangerous quick positions in GameStop.


Politico reported on Tuesday that Robinhood CEO Vlad Tenev is predicted to seem earlier than the committee led by Rep. Maxine Waters (D-CA) later this month. Guests on the listening to haven’t but been introduced by the panel.

Tenev has defended Robinhood’s resolution to dam new positions in GameStop—a restriction that has now been partially lifted—claiming that the corporate was making an attempt to stick to monetary rules whereas defending its prospects.

He additionally denied that the buying and selling app made any offers with market movers and hedge funds to cap the squeeze placed on them by retail traders utilizing the software program.

Source Link – www.newsweek.com

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