FOR IMMEDIATE RELEASE
Tuesday, February 16, 2021
Contact: Pamela Russell at 202-618-6433 or prussell@bettermarkets.com
Better Markets Sends Letter to House Financial Services Committee on Key Issues for
Thursday’s Hearing on GameStop Trading and the Role of Robinhood, Citadel, Reddit
Washington, D.C. – Dennis M. Kelleher, President and Chief Executive Officer of Better Markets, issued the following statement in connection with a letter sent today to the Chairwoman, Ranking Member and Members of the House Financial Services Committee regarding the Hearing on Thursday entitled “Game Stopped? Who Wins and Loses When Short Sellers, Social Media, and Retail Investors Collide”:
“The trading frenzy in GameStop and other so-called ‘meme’ stocks is going to cost retail investors billions of dollars in losses. It also exposed how rigged the U.S. equity markets are to enrich big Wall Street firms, high frequency trading firms and brokers at the expense of Main Street retail investors, mutual and pension funds, and the buy side generally. It is imperative for our markets, capital formation, price discovery, the financial system and the economy as a whole – as well as for investor protection – that the Committee examine and discover exactly who did what to whom and who benefited from this trading frenzy.
“Importantly, while regulators and prosecutors must determine if anyone broke the law, rigged markets do not necessarily mean illegal markets and that is why the House Financial Services Committee hearing is so important. Whether illegal or not, today’s markets are opaque and fragmented due to created complexity that facilitates if not rewards wealth extraction for the few rather than wealth creation for the many.
“Our letter points out the key areas and questions that the Committee must thoroughly examine if our markets are to remain preeminent and trusted: gamification; payment for order flow; conflicts of interest; transparency; short selling activities; high frequency trading; best execution; manipulation; capital and liquidity requirements; forced arbitration; and the consolidated audit trail. While there is still much that the public does not know and more issues will undoubtedly come to light in the coming weeks and months, these are key issues that our letter highlight and that the Committee must address on Thursday.”
Our letter is available here and related Fact Sheets will be issued later today and available on our website 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
