FOR IMMEDIATE RELEASE
Tuesday, March 16, 2021
Contact: Pamela Russell at 202-618-6433 or prussell@bettermarkets.com
WASHINGTON, D.C. — Dennis Kelleher, Co-founder, President and Chief Executive Officer, will testify Wednesday, March 17, before the U.S. House Committee on Financial Services at a hearing titled “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide, Part II.”
In his testimony, Mr. Kelleher will address the immediate need for tougher regulatory oversight to reform U.S. markets, end predatory and other harmful practices, and stop what too many in the financial industry continue to view as a game. Mr. Kelleher released the following statement in advance of his testimony:
“The U.S. securities markets are the envy of the world, but that is because they are highly regulated and policed, thereby creating investor trust and confidence. But that reputation—and the preeminent role of our markets—is not guaranteed and, indeed, is in peril if the structural problems highlighted by the recent GameStop turmoil are not addressed.
“In my testimony, I will emphasize that there is an immediate need to protect investors, capital formation and financial stability from today’s rigged markets. Those markets are needlessly fragmented primarily for wealth extraction from the buy side by the sell side. The conflict-ridden legalized bribery of payment for order flow is a key example. Contrary to the exaggerated claims of industry based on phony benchmarks, payment for order flow actually ensures that retail investors will not get the ‘best execution’ for their orders. That costs Main Street investors, pension funds and the buy side more broadly billions of dollars every year.
“I will also call on policymakers to return the financial system and our markets to their intended purpose: wealth creation for the many, not enrichment for the few. Finance is supposed to support the real, productive economy, jobs and growth, and the markets are for capital formation and allocation, price discovery and liquidity. Ending payment for order flow and other conflicts of interest will reduce costs and complexity, increase efficiency and transparency, level the playing field between the sell side and the buy side, and ignite broad-based wealth creation.”
For more information and resources on the GameStop frenzy and the many related market issues, visit Better Markets’ webpage. The Committee will livestream the hearing, which begins at 10 a.m., ET, on Wednesday, March 17, here.
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Better Markets is a non-profit, non-partisan, and independent organization founded in the wake of the 2008 financial crisis to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies – including many in finance – to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.com.
