U.S. lawmaker calls for the investigation of free-trading app Robinhood over market manipulation
Nickie Louise
Posted On January 28, 2021
A few hours ago, we wrote about Robinhood after the free-trading app halts trading of GameStop stock as Reddit investing frenzy spreads around the world. It all started after several hedge funds and Wall Street elites lost billions as a result of their GameStop play.
Then this morning, Robinhood announced that millions of its customers will no longer be able to buy Gamestop stock on the free-trading app, thereby blocking 2.8 million members of the WallStreetBets forum on Reddit. Robinhood also said it aims to do the same for AMC, Nokia, BlackBerry, Naked Brands, and a few other stocks.
Now, U.S. Congresswoman Alexandria Ocasio-Cortez (AOC) is outraged and angry at Robinhood’s decision to place trade restrictions on users from purchasing certain stocks while large financial institutions can “freely trade the stocks.” In a tweet posted this morning, AOC called the double-standard “unacceptable.”
“This is unacceptable. We now need to know more about @RobinhoodApp’s decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit. As a member of the Financial Services Cmte, I’d support a hearing if necessary,” AOC tweeted.
AOC is now calling the US Congress to investigate the matter. In another tweet, AOC said,
“Inquiries into freezes should not be limited solely to Robinhood. This is a serious matter. Committee investigators should examine any retail services freezing stock purchases in the course of potential investigations – especially those allowing sales, but freezing purchases.”
Inquiries into freezes should not be limited solely to Robinhood.
This is a serious matter. Committee investigators should examine any retail services freezing stock purchases in the course of potential investigations – especially those allowing sales, but freezing purchases.
— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
AOC’s tweets have received praises from some of her opponents. Even rapper Ja Rule chimed into the discussion about the corruption on Wall Street. He said, “The hedge fund guy shorted these stocks now we can’t buy them ppl start selling out of fear… we lose money they make money on the short… THIS IS A FUCKING CRIME!!!”
They hedge fund guy shorted these stocks now we can’t buy them ppl start selling out of fear… we lose money they make money on the short… THIS IS A FUCKING CRIME!!!
— Ja Rule (@jarule) January 28, 2021
Another person on Twitter weighed in saying that the investigation needs to “go beyond #Robinhood. All week long, hedge funds have been selling to each other to give the appearance of a sell-off.” He added, “This is exacerbated by B-D preventing investors from buying, bc of less resistance to selling. Investigate these funds & their activity!”
This needs to go beyond #Robinhood. All week long, hedge funds have been selling to each other to give the appearance of a sell-off.
This is exacerbated by B-D preventing investors from buying, bc of less resistance to selling. Investigate these funds & their activity! pic.twitter.com/y815vWEkhF
— Felix (@ladygagadisco) January 28, 2021
Ramit Sethi, another Twitter user also urged individual investors to stop using Robinhood. Here is what he said:
“1 No individual investor should use Robinhood. Not just because they stopped GME, but because they actively drive risky behavior
2 There should not be different rules for the rich
3 You can sidestep the entire game of picking individual stocks & make incredible amounts of money”
1 No individual investor should use Robinhood. Not just because they stopped GME, but because they actively drive risky behavior
2 There should not be different rules for the rich
3 You can sidestep the entire game of picking individual stocks & make incredible amounts of money
— Ramit Sethi (@ramit) January 28, 2021
