U.S. Treasury Secretary Janet Yellen has promised to protect investors, saying financial market regulators need to fully understand the recent market turmoil involving Gamestop Corp and other retail stocks before acting.
On Thursday, Yellen met with several top U.S. market regulators, including the head of the Securities and Exchange Commission (SEC), the US Federal Reserve (Fed), the New York Fed and the Commodity Futures Trading Commission (CFTC), which serves as key monitors. Wall Street.
Through a statement issued by the Treasury Department following the meeting, regulators believed that the core infrastructure of the financial markets proved resilient during high volatility and large volumes.
However, an accurate study of the incident by the SEC is also important. According to Yellen, the SEC and CFTC are studying whether the trade is in line with investor protection as well as a fair and efficient market.
In addition, Yellen also told regulators that they need to understand in depth and look closely at recent events before taking action.
Last week, the market witnessed a war between retail investors and institutional investors (hedge funds) that pushed some stocks, including Gamestop soaring higher and caused huge losses to large investors.
