After nearly 9 months, the Securities and Exchange Commission released its report on January’s meme stock mania yesterday. Their dramatic conclusion:
There are many different types of investors, and they buy and sell stocks for many different reasons.
Good thing we’re paying these guys, huh?
The report is mostly a bland summary of the run-up in stocks like GameStop Corp., AMC Entertainment Holdings, Inc., and others. It ends with a series of milquetoast “areas for potential study” including “forces that may cause a brokerage to restrict trading”.
I’ll give you something to study: how about the internal chat logs at Robinhood in which the person who made the decision to restrict trading describes selling all his AMC shares first?
This allegation appears in a pending lawsuit in US District Court in South Florida. I find it incredible that the SEC never even bothers to mention it or investigate its veracity.
I just came back from vacation, and I was hoping to feel relaxed. But frankly, reading this report pissed me off.
This is the usual government hemming and hawing while strong evidence exists of crimes by well-connected fatcats.
The only way it’s going to change is if the public speaks out.
More on markets:
Robinhood Exec Dumped AMC Right Before He Limited Trades, Lawsuit Alleges
Robinhood Knew Its Platform Was Falling Apart, But Kept Signing Up Record Numbers of Users
AMC Fails to Deliver Are 40,000 Times Amazon’s, Per Latest Data
Photo: “CMI 101: Demystifying Derivatives with CFTC Chairman Gary Gensler” by Third Way is licensed under CC BY-NC-ND 2.0
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