Democratic congresswoman Rashida Tlaib has called for a House hearing over trading app Robinhood banning the purchase of certain stocks after amateur traders humiliated Wall Street. Fellow ‘Squad’ member AOC seconded the idea.
The amateur traders united through Reddit and Discord this week, causing hedge funds to lose billions of dollars by purchasing stock in companies such as GameStop, which Wall Street was betting against.
However, the ironically named Robinhood – which acted as one of the main platforms for the traders to purchase through – responded on Thursday by banning the purchase of the stocks in question, prompting allegations of a rigged and anti-free market.
Tlaib – a member of the progressive congressional ‘Squad’ – joined thousands of Americans condemning Robinhood and called for an official hearing on the matter, branding the trading app’s decision “beyond absurd.”
In a Twitter post, the Michigan congresswoman said the US House Committee on Financial Services needs “to have a hearing on Robinhood’s market manipulation.” She accused the app of “blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who’ve used the stock market as a casino for decades.”
This is beyond absurd. @FSCDems need to have a hearing on Robinhood’s market manipulation. They’re blocking the ability to trade to protect Wall St. hedge funds, stealing millions of dollars from their users to protect people who’ve used the stock market as a casino for decades. https://t.co/CGkJxVfzkv
— Rashida Tlaib (@RashidaTlaib) January 28, 2021
New York Congresswoman and fellow squad member, Alexandria Ocasio-Cortez followed Tlaib’s statement with her own, calling Robinhood’s actions “unacceptable” and declaring that more information was needed on the app’s decision to block trade.
“As a member of the Financial Services Cmte, I’d support a hearing if necessary,” she wrote.
Tlaib’s statement also notably received support from some conservatives on Twitter.
Squad-adjacent California Rep. Ro Khanna also condemned Robinhood in a statement on Thursday, calling for “more regulation and equality in the markets.”
“We’re done letting hedge fund billionaires treat the stock market like their personal playground, then taking their ball home as soon as they lose,” Khanna wrote, adding that the incident “showed how the cards are stacked against the little guy in favor of billionaire Wall Street Traders.”
If you like this story, share it with a friend!