New York prosecutor Letitia James announced that she is investigating the recent activities of Robinhood after the trading platform restricted trading in certain securities Thursday, resulting in more moods against the company.
“We are aware of concerns that have been raised about the activity of the Robinhood app, including trading related to the GameStop stock,” James said in a statement. “We are examining this issue.”
Robinhood and other trading platforms announced Thursday that they limited trade for a handful of securities that have exploded in value this week, including GameStop, AMC, BlackBerry, Tootsie Roll, Trivago and others. The share subscriptions are run by Reddit users who bought shares that they saw as over-mapped.
FOX Business’ Charlie Gasparino also reported Thursday that the SEC investigates a potential market manipulation case involving a sharp rise in the GameStop stock and the Reddit forum WallStreetBets, where retail investors discussed the massive short press.
Hawley said on Friday on “Fox & Friends” that more scrutiny is being given to this situation than some of the companies that caused the 2008 financial crash.
LATE. JOSH HAWLEY: “What we have seen with this GameStop breakdown that Wall Street has now is that these people at home, today it’s, retail investors, they got more criticism and more scrutiny than the people who alone crashed the entire financial market. 2008, and they were saved! The government saved all these people. I mean, it really shows you that the solution is in.
Now, the big hedge funds do not want any real competition. It’s fine if these day traders do what they know, you know, do what they’re supposed to do, but when they get their own ideas and they’re betting on Wall Street? Well, boy, then they are a threat, then they must be shut down.
I just think this shows you that just like we got this concentration of power, in so many industries, the technology companies, also on Wall Street, the big banks, the big hedge funds, they do not want competition, they want control. “
FOX Business Paul Best contributed to this report.
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