General Discussion

Yo_Mama_Been_Loggin

(107,860 posts) Mon Feb 1, 2021, 09:48 PM Feb 2021

Elizabeth Warren told the SEC to 'grow a backbone' and regulate hedge funds in the wake of

the GameStop-Wall Street saga

In the wake of the GameStop trading frenzy, Sen. Elizabeth Warren says the US Securities and Exchange Commission needs to introduce more regulation to keep hedge funds from playing markets to their advantage.

And it should "grow a backbone" to enforce those rules, she told CNN's "State of the Union" on Sunday.

"We've got a real problem on Wall Street, and it's time to fix it," she added.

Day traders have banded together on Reddit to bump up the prices of several stocks, most notably GameStop but also AMC and Nokia, after noticing that hedge funds were betting against them. GameStop stock has gained massively in recent weeks - from below $5 late last year to a peak of more than $450 a share on Thursday.

Warren wrote to the SEC on Friday urging it to investigate the saga and asking how it would prevent similar incidents. Senate Majority Leader Chuck Schumer is similarly pushing the SEC to launch an investigation "ASAP."

https://www.msn.com/en-us/money/markets/elizabeth-warren-told-the-sec-to-grow-a-backbone-and-regulate-hedge-funds-in-the-wake-of-the-gamestop-wall-street-saga/ar-BB1dhOLP?li=BBnb7Kz

4 replies

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Elizabeth Warren told the SEC to 'grow a backbone' and regulate hedge funds in the wake of (Original Post) Yo_Mama_Been_Loggin Feb 2021 OP

The SEC probably shouldn't allow 160% of the number of floating shares in a company to be shorted. PoliticAverse Feb 2021 #1

NOOOOOOOOOO....... COL Mustard Feb 2021 #2

I don't think the SEC knows how to do that... stillcool Feb 2021 #3

K&R, ... and trading platforms that allow hedge funds 2 - 3 times the float in short trades. Pigs .. uponit7771 Feb 2021 #4

PoliticAverse

(26,366 posts)

1. The SEC probably shouldn't allow 160% of the number of floating shares in a company to be shorted.

Reply to Yo_Mama_Been_Loggin (Original post)

Mon Feb 1, 2021, 09:51 PM

Feb 2021

But the SEC has a long history of ignoring problems on Wall Street involving shorting stocks.

COL Mustard

(5,890 posts)

2. NOOOOOOOOOO.......

Reply to Yo_Mama_Been_Loggin (Original post)

Mon Feb 1, 2021, 10:05 PM

Feb 2021

I haven't lost all my money yet!!!!

stillcool

(32,626 posts)

3. I don't think the SEC knows how to do that...

Reply to Yo_Mama_Been_Loggin (Original post)

Mon Feb 1, 2021, 10:50 PM

Feb 2021

When was the last time they attempted to do such a thing in good faith? Seems every time they get the chance they come up with another way to create money out of thin air, deferring any debt to some other time and place. The whole frigging thing is rotten to the core. Does anyone even know half the shit that goes on?

uponit7771

(90,329 posts)

4. K&R, ... and trading platforms that allow hedge funds 2 - 3 times the float in short trades. Pigs ..