Senate banking sector committee chair Sherrod Brown also announced a hearing on the recent craze in US stock markets. “People on Wall Street only care about the rules if they are the ones in pain. American workers have known for years that the Wall Street system is broken because they are paying the price,” said Brown.
Democrats and Republicans have fiercely criticized the popular investment app Robinhood. He decided that his customers could no longer buy shares of GameStop and certain other companies after the stormy price trend of the past few days. New York City Attorney Letitia James announced that he was investigating the matter.
Robinhood founder Vlad Tenev defended the decision via Twitter by pointing out the capital requirements that the app must meet as a stock trading broker. Allowing the massive buyback of GameStop shares to proceed undisturbed would involve too great a risk.
“Some of the financial requirements fluctuate based on the price movements in the market, and they can be substantial in the current circumstances,” Tenev wrote. “These requirements are there to protect investors and markets, and we take our obligations very seriously.”
View Björn Soenens’ analysis here: