Sherriff of not-again

4 February 2021 By Anna Szymanski

Treasury Secretary Janet Yellen and other market sheriffs are convening to discuss the impact of the GameStop saga. There may be a case for throwing sand in the gears of retail investing, to offset fee-free trading and gamification. But the less regulators intervene the better.

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U.S. Treasury Secretary Janet Yellen said on Feb. 4 that she was going to meet that day with the heads of the U.S. Securities and Exchange Commission, the Federal Reserve and the Commodity Futures Trading Commission. The discussion would include recent volatility related to stocks like GameStop with a view to ensuring "financial markets are functioning properly, efficiently and that investors are protected," she said on ABC’s Good Morning America.

GameStop’s share price rose over 1,600% between its closing prices on Jan. 12 and Jan. 27, but had declined by over 70% as of Feb. 3. Retail investors using online message boards on Reddit had discussed bidding up the price of the video-game retailer and other stocks, including AMC Entertainment and BlackBerry, which also rose strongly.

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