U.S. panel to hold hearing on GameStop, other social-media driven stock trading

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FILE PHOTO: House Financial Services Committee Chairwoman Maxine Waters (D-CA) attends a House Financial Services Committee hearing on “Oversight of the Treasury Department’s and Federal Reserve’s Pandemic Response” in the Rayburn House Office Building in Washington, U.S., December 2, 2020. Greg Nash/Pool via REUTERS

WASHINGTON (Reuters) – U.S. House Financial Services Committee chair Maxine Waters said on Thursday she will hold a hearing on recent stock trading in GameStop and other stocks that have experienced dramatic swings attributed to social media-driven trading.

“We must deal with the hedge funds whose unethical conduct directly led to the recent market volatility and we must examine the market in general and how it has been manipulated by hedge funds and their financial partners to benefit themselves while others pay the price,” Waters, a Democrat, said, adding the hearing will focus on “short selling, online trading platforms, gamification and their systemic impact on our capital markets and retail investors.”

Reporting by David Shepardson; Editing by Chris Reese

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