Hawley: Gamestop, Robinhood saga shows ‘the fix is in’ on Wall Street

Sen. Josh Hawley, R-Mo., said the “fix is in” when it comes to Wall Street, arguing that the Gamestop stock surge shows that hedge funds do not want “real competition” from small investors. 

New York Attorney General Letitia James announced she is looking into recent activity on Robinhood after the trading platform restricted trading of certain securities Thursday, resulting in multiple lawsuits against the company.

“We are aware of concerns raised regarding activity on the Robinhood app, including trading related to the GameStop stock,” James said in a statement. “We are reviewing this matter.”

Robinhood and other trading platforms announced Thursday that they were restricting trading for a handful of securities that have exploded in value this week, including GameStop, AMC, BlackBerry, Tootsie Roll, Trivago, and others. The stock surges were fueled by Reddit users buying stocks that they saw as over-shorted. 

FOX Business’ Charlie Gasparino also reported Thursday that the SEC is looking into a potential market manipulation case involving the surge of GameStop stock and the Reddit forum WallStreetBets, where retail investors discussed the massive short squeeze.

I just think this shows you that just like we got this concentration of power, in so many industries, the tech companies, on Wall Street too, the big banks, the big hedge funds, they don’t want the competition, they want to be in control.”

FOX Business’ Paul Best contributed to this report.

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