For Rep. Patrick McHenry (R-N.C. 10th District), ranking member of the House Financial Services Committee and proponent of more open financial markets, the GameStop trading frenzy presents an opportunity to further democratize investing.
"This is a true power-of-the-people moment, where you see Reddit users… that communicated with each other about what large sophisticated hedge funds were doing to a particular stock, and so they took action," McHenry told Cheddar.
The committee will hold hearings on the incident in the next two to three weeks, according to McHenry. The goal, he said, is to better understand if there are any legal issues to address and if the David-and-Goliath media narratives pass the muster of closer scrutiny.
"We need to understand if any laws were broken, if any regulations were broken here, and what exactly happened with this larger moment of Reddit users outsmarting and outwitting hedge funds," he said.
The representative also stressed that the hearing would not focus on a single company, such as Robinhood, which has gotten heavy criticism from fellow lawmakers on both sides of the aisle for limiting trading activity of Reddit-targeted stocks in the middle of the buying spree.
Robinhood CEO Vladimir Tenev recently said in a conversation with Elon Musk that the restrictions were meant to help the company conform to capital requirements. McHenry said regulations concerning capital requirements for broker-dealers could also be on the docket.
"We have to make sure that the regulations are appropriate for broker-dealers to hold capital," he said. "We need to understand the clearing process."
Ultimately, he said it should be easier for newcomers, such as the wave of investors who piled into GameStop stocks, to take advantage of financial markets.
"What this moment shows me is that average, everyday investors can be quite sophisticated, and simply having a wealth standard is not a sufficient mechanism," he said. "We need to ensure that people can test into the accredited investor standard, so that these average, everyday investors can get those deeper, earlier access to sophisticated products."
An analyst at JP Morgan is predicting massive future growth for Apple in its music and gaming divisions — to the tune of more than $8 billion in revenue by 2025. Cheddar News anchors Kristen Scholer and Hena Doba discuss the glowing forecast for the tech giant.
Catching you up on today’s top headlines with Bitcoin falling below $24,000, U.S. gas prices reaching above $5 on average, Tesla shareholders voting on a 3-for-1 stock split, and more.
On this episode of On The Job presented by ADP: Gemma Burgess, CEO of Ferguson Partners, explains what people are looking for in an employer, and how to convey positive work culture to potential employees; Amy Leschke-Kahle, Vice President of Performance Acceleration at The Marcus Buckingham Company, an ADP company, breaks down how encouraging employee engagement and empowering employee voices can benefit every workplace and busts a myth about employee engagement while working from home; Jim Huether, CEO of Hyperice, discusses Hyperice's new employee mental health initiative, known as the Workplace Alliance, with 100-plus companies to combat the ongoing mental health crisis and how they're taking a hands-on, data-driven approach to the mental health crisis.
Amy Leschke-Kahle, Vice President of Performance Acceleration at The Marcus Buckingham Company, an ADP company, joins Cheddar to discuss how encouraging employee engagement and empowering employee voices can benefit every workplace and busts a myth about employee engagement while working from home.
Jim Huether, CEO of Hyperice, joins Cheddar to discuss Hyperice's new employee mental health initiative, known as the Workplace Alliance, with 100-plus companies to combat the ongoing mental health crisis and how they're taking a hands-on, data-driven approach to the mental health crisis.
Consumer prices saw an 8.6 percent jump in May, with fuel prices showing the biggest surge, climbing 17 percent last month. As inflation continues to climb to levels not seen in 40 years, President Biden took to calling out ExxonMobil and other major oil companies, accusing them of holding back production while continuing to collect huge profits at the cost of the consumer. Mark Avallone, the president of Potomac Wealth Advisors, joined Cheddar's Opening Bell to discuss. “They have reduced long-term expenditures. But why? Because the world is going to alternative energy and as consumers, if we thought that that welcome change to alternatives was going to happen without pain, we might have been mistaken," he said. "The less investment they make in oil because they're getting ready for a new world of electric vehicles, the less we're going to be prepared for oil shocks such as the one we got when Russia invaded Ukraine."
Catching you up on the stories you need to know this morning, the U.S. could soon get its first major gun safety law in years, the House Select Committee investigating the January 6th attack on the U.S. capitol holds its second hearing, and today might just be the day the Supreme Court overturns Roe v. Wade, and decides on new gun laws.
