Senate Banking Panel Plans Hearing Amid GameStop Trading Frenzy

[demmiblue]

Source: Bloomberg

The Senate Banking Committee will hold a hearing on “the current state of the stock market,” incoming Chairman Senator Sherrod Brown said Thursday, as a growing number of lawmakers criticized moves to curb Reddit-fueled trades in companies like GameStop Corp.

“People on Wall Street only care about the rules when they’re the ones getting hurt. American workers have known for years the Wall Street system is broken -- they’ve been paying the price,” Brown said in a statement. “It’s time for the SEC and Congress to make the economy work for everyone, not just Wall Street.”

While Brown didn’t announce a date for the hearing, a rare bipartisan collection of lawmakers joined in criticising platforms like Robinhood Markets Inc. for limiting trading in some stocks, saying it unfairly disadvantages regular people who should be allowed to trade as freely as hedge funds.

Progressives including Representative Alexandria Ocasio-Cortez and Senator Elizabeth Warren, as well as Senate Banking Republican Pat Toomey said the moves merit closer regulatory scrutiny. House Speaker Nancy Pelosi called trades “interesting,“ and said the relevant agencies should examine the issue.

Read more: https://www.bloomberg.com/news/articles/2021-01-28/brown-says-senate-panel-to-hold-hearing-amid-gamestop-frenzy

[SheltieLover]

1. Crisis because it wssn't voldermort manipulating market?

[TomCADem]

11. Isn't Doing a Pump and Dump Illegal?

Just like Senators should not claim that COVID is a hoax while quietly dumping hotel stocks, likewise you shouldn't have traders doing pump and dump schemes. While it seems like s&^ts and giggles, some of these investors have themselves been left holding the bag.

[Decoy of Fenris]

14. Is it a pump and dump if there's no dump?

GME investors are being urged, and are so far doing so, to "diamond hand" their stocks; Don't sell for any reason, at any price. Squeeze the hedgies for as long as possible.

People are even now, SUPER LATE and at a super-inflated price, buying fresh stocks and coming into the game as rookies, contributing to 'The fight' with every intention of losing every dime. The American brokers may have halted trading for retail traders, but the overseas markets have caught wind and their investors are keeping GME propped up until Reddit can mobilize again.

It's a small price to pay for the massive damage the hedgies are sucking on, and the WSB reddit sacrifice willingly for it. It's not about the money and it never was; Now, it's about battling a corrupt institution in the only way they understand: 70 billion in hedgie losses to date, and its only spreading as those who 'won' on GME are diversifying and striking at other shorted stocks with the money they've earned from fucking over hedgies.

Wall Street is in an utter panic, because the WSB crew have no intention of 'dumping'. It's not about making money, but about sending a message.

To quote WSB, "YOU GET WHAT YOU FUCKING DESERVE.", a phrase from the most recent Joker movie.

[oldsoftie]

15. But now the halting of buying caused GME to drop a shit ton today

100s of thousands grouped together became their own hedge fund
Good for them
All big short sellers should be outlawed

[Decoy of Fenris]

16. And its already recovered in overnight. WSB has gone from 3 mil to 5 mil users in 24 hours.

The more the hedgies try to 'fix' this in their favor, the more people arm up and hop into the fray. I'm doing so myself in the AMC Brigade tomorrow. The news coverage is absolutely slaughtering Wall Street about this, with some Wall Streeters calling the Redditors "Unsophisticated" and "Petty" and "Meaningless" and "Clueless" investors outright, on camera. They say these things while those same Redditors are butchering them to the tune of 70 bil and it will only get far, far, FAR worse if the diamond-hands stay diamond. Some of the more conservative rumors speculate at 20x that amount if the Hedgies dont blink.

To wit,

"On board as well, fuckem. I'm a nobody with nothing. Intimidating me by saying you'll take my money is a fucken joke, I was born into poverty bitch. You aren't threatening me with something I don't already have."

[oldsoftie]

23. I did the same with AAL. It another on their list

[TomCADem]

17. Sure there isn't

Folks are really going to buy and gamestop. This reminds me of Iomega where daytraders jumped on the band wagon with the hope of jumping off at the tight time. There is nothing noble about this.

[Decoy of Fenris]

18. Might not be noble, but it's funny as hell to watch, and only just beginning. n/t

[TomCADem]

24. I Thought Loeffler and Perdue Should Have Gone to Jail...

...for trading on insider information, but if folks seem to think that market manipulation is funny to each their own.

[CaptainTruth]

19. It's not a pump & dump, it's a whole bunch of people buying a stock...

...which sends the price up.

I can verbally recommend that 10 of my friends buy a stock, or I can post a recommendation on social media. People can buy it or not. Nothing illegal about it.

[calguy]

2. Waste of time imo

This kind of stuff goes on every single day and almost none of it is illegal. Gamestop only made the headlines because it was so large, but pump 'n dumps are a fact of life in day trading. Every single person who traded it did so by their own decision and is fully responsible for the outcome of the trades they made.

[Decoy of Fenris]

5. No one who invested in GME/etc. mind losing, they mind brokerages stopping them from trading it

while allowing the hedgers to 'restructure' behind the scenes. It's blatant market manipulation on Wall Street's part, and they should certainly be held accountable.

[BumRushDaShow]

7. This might help

re-put (yes I used that term ) some teeth back into Dodd-Frank.

[TreasonousBastard]

3. Some hedge funds went broke. Big deal. Howcum they haven't looked at options and...

derivatives in general? Program trading might be worth a looksee, too.

[JustABozoOnThisBus]

8. Yep, just a case of bad hedge fund management.

Investing is risky. Investing in futures is even more risky. Moderation, nitwits, don't bet the farm.

And I hope we don't feel the need to use tax money to bail out the hedge funds.

[luxmatic]

4. Necessary reading

https://pluralistic.net/2021/01/28/payment-for-order-flow/#wallstreetbets

But the road to legitimacy is rocky. Yesterday, the finance monopolist TD-Ameritrade halted trading on the stocks targeted by the average joes. Today, Robinhood followed suit. Maybe they fear that they can't control the monster they created?

[mathematic]

6. That's paranoid nonsense. TD Ameritrade did not halt trading

And what exactly do they have a monopoly on anyway?

[Ziggysmom]

9. I know who is responsible!!!

[BumRushDaShow]

12. Someone else agrees...

Link to tweet

TEXT

Chamath Palihapitiya
@chamath
today was a fun day.
Turner Novak
@TurnerNovak
why did today feel so familiar?
Embedded video
12:12 AM · Jan 27, 2021

[rdking647]

13. my favorite movie of all time

i actually used to be a trader on the comex floor in newyork where it was filmed

[Ziggysmom]

22. Wow, were you in the commodities pits? That always looked like the most stressful jobs ever.

Now everything relies on computers and algorithms. 🤓

[Yo_Mama_Been_Loggin]

10. As does the House

WASHINGTON (Reuters) - The U.S. House Financial Services and Senate Banking committees said on Thursday they will hold hearings on the stock market after users of investment apps faced trading limits following the "Reddit rally" that put a charge into GameStop and other volatile stocks that were touted in online forums.

"We must deal with the hedge funds whose unethical conduct directly led to the recent market volatility and we must examine the market in general and how it has been manipulated by hedge funds and their financial partners to benefit themselves while others pay the price," said Representative Maxine Waters, a Democrat who heads the House panel.

-snip-

Democrat Alexandria Ocasio-Cortez and Republican Ted Cruz were among a growing number of lawmakers who agreed Congress needed more information.

Ocasio-Cortez, a member of the U.S. House of Representatives, tweeted the restriction was "unacceptable," adding Congress needed to know more about the move "to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit."

Senator Ted Cruz, a Republican, took to Twitter retweeting Ocasio-Cortez with rare words of agreement, writing "Fully agree."

https://www.msn.com/en-us/money/markets/us-congress-to-hold-hearings-on-gamestop-trading-state-of-stock-markets/ar-BB1dbM1c?li=BBnb7Kz

[IsItJustMe]

20. Back when the stock market actually reflected the economy,

you could leverage your money in a way where you would not financially get
hurt from a bear or bull market.

All those indicators are gone now. I got out several years ago when I realized
that Gold was going down at the same time the economy was in a slump.
Never saw that before but I have seen it a number of times since.

Too me anyway, as it stands, it's a rich mans casino.

[badboy67]

21. Meh.