GameStop Frenzy Shows ‘Important’ Policy Issues for Congress, Psaki Says
(Bloomberg) -- The frenzied trading of GameStop Corp. points to policy questions that lawmakers should examine, said White House Press Secretary Jen Psaki.
“There is an important set of policy issues that have been raised as a result of market volatility in recent days, and we think congressional attention to these issues is appropriate and would welcome working with Congress,” Psaki told reporters at the White House on Monday.
Psaki didn’t specify any needed policy changes and said she couldn’t comment on whether the White House has discussed any specifics with lawmakers.
Retail investors rapidly drove up GameStop’s shares, squeezing hedge funds with large short positions in the company, in a twist that has grabbed attention on Wall Street and in Washington.
But by Monday, after absorbing a $20 billion hit, bears appear to have started covering their GameStop positions in earnest amid a plunge in the stock.
©2021 Bloomberg L.P.