GameStop, other short squeezes expected to face regulatory scrutiny
Sen. Elizabeth Warren, D-Mass.
A U.S. legislator and some members of the hedge fund community are calling for regulatory scrutiny and intervention regarding last week s pummeling of short sellers by retail investors.
Sen. Elizabeth Warren, D-Mass., a member of the Senate Committee on Banking, Housing and Urban Affairs, sent a letter to Allison Herren Lee, acting Securities and Exchange Commission chairwoman, requesting that Congress and the public are given information on how the SEC intends to address these concerns and prevent these and future incidents of potential market manipulation.
Ms. Warren said the wild fluctuations in GameStop Corp. and other U.S. companies stock prices are just the latest indication that many private equity firms, hedge funds, and other investors, big and small, are treating the stock market like a casino, giving little consideration to the companies, communities, workers, and