An almost unprecedented set of circumstances have created a situation in which normally diametrically opposed politicians agree on an action. Alexandria Ocasio-Cortez just called for a hearing on (and likely an investigation into) Robinhood’s decision to block retail investors from purchasing stock “while hedge funds are able to trade the stock as they see fit.” AOC continued, “As a member of the Financial Services Committee, I’d support a hearing if necessary.”
On top of the US Representative (D, NY-14) calling for a hearing, Texas Senator Ted Cruz (R) publicly announced that he “fully agree[d]” with AOC’s support of a hearing. It might also shock the masses to see that AOC’s views are in accord with Donald Trump Jr. – as far as Tweets today, go. Take a peek at that duality today too.
“Gotta admit it’s really something to see Wall Streeters with a long history of treating our economy as a casino complain about a message board of posters also treating the market as a casino,” wrote AOC in the late afternoon on January 27, 2021.
Take a peek at the timeline of links below to see the events that’ve led up to the situation we find ourselves in right this minute. After Reddit users appeared to pump up stocks like GameStop, AMC Theaters, BlackBerry, and Nokia, trading platforms blocked purchase of said stocks – and said platforms saw significant down time this morning. It is all a big mess, of that you can be sure.
UPDATE: AOC responded to Ted Cruz with a note about the recent government insurrection, generally referred to as the Capitol Attack. It would appear that the seriousness of the situation is not trumped by the relative lack of consequence seen by representatives like AOC since said attack on the capitol earlier this year.
UPDATE 2: A class-action lawsuit was filed against Robinhood today in the United States District Court, Southern District of New York. This suit was initiated by plaintiff Brandon Nelson and asserts the following:
1. Robinhood is an online brokerage firm.
2. Robinhood purposefully, willfully, and knowingly removing the stock “GME” from its trading platform in the midst of an unprecedented stock rise thereby deprived retail investors of the ability to invest in the open-market and manipulating the open market.
This case is number 1:21-cv-00077, filed today, the 28th of January, 2021. A link to the suit can be found at Court Listener. There the file can be found in PDF form.
UPDATE 3: AOC Tweets that she’ll be streaming on Twitch tonight about GameStop. What a world we live in today.