Yellen Steps In
When the Biden administration stepped into place in January, many changes were made. One of the most prominent changes included a new Treasury Secretary, Janet Yellen. Within just her first few weeks on the job Yellen was faced with unprecedented market news as the rise of GameStop pushed online brokers and Hedge Funds into hot water.
Many pressured Yellen to act upon this market frenzy and get to the bottom of it. As of today, it looks like Yellen is finally acting, calling the Securities and Exchange Commission, the Federal Reserve Board, the Federal Reserve Bank of New York, and the Commodity Futures Trading Commission, for a meeting. It looks like the big legal names are starting to investigate the commotion, specifically aiming to find potential misconduct with brokerages’ decisions to halt buying that triggered the retail-investor revolt.
Some investors have pointed out that Janet Yellen may not be fit to lead such discussions, as she herself has been involved with big Banks. In fact, Yellen earned $7.2 million-plus from speaking gigs at banks and Wall Street firms in 2019 and 2020, according to her financial disclosure forms. In response to this White House Press Secretary Jen Psaki explained “Separate from the GameStop issue, the Secretary of Treasury is one of the world-renowned experts on markets, on the economy,”
With these factors in mind, do you think this meeting will encourage any policy reform on Wall Street or will the little investor always be at a disadvantage to Hedge Funds?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.