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:
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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