Reddit forum's role in Gamestop shares frenzy faces regulatory probe
Thursday, 28 January 2021 US regulators are to review extraordinary rallies in the shares of struggling gaming retailer Gamestop, part-driven by users of a forum on Reddit, as concerns grow over a surge in retail investor activism.
The head of trading app Robinhood and Wall Street hedge fund managers on Thursday fielded a barrage of questions in the U.S. Congress about their role in the GameStop trading frenzy, at times being cut off by irate lawmakers. This report produced by Lisa Bernhard.
Robinhood CEO Vlad Tenev on Thursday defended the online brokerage app's actions during the recent Reddit rally in shares of GameStop, saying: "Robinhood Securities put the restrictions in place in an effort to meet increased regulatory deposit requirements, not to help hedge funds. We don't answer to hedge funds. We serve the millions of small investors who use our platform every day to invest."
Shares of American Airlines soared early Thursday after a mention on Reddit's WallStreetBets forum, where rookie investors have been pumping up stocks of struggling companies at the expense of big Wall..