Thursday’s hearing about the recent GameStop trading mania, to be held at noon by the House Committee on Financial Services, will probably feature populist anger from both parties, directed at both the popular trading app Robinhood and the short sellers who targeted the video game retailer.
Representative Alexandria Ocasio-Cortez, a New York Democrat and a member of the financial services panel that is holding the hearing, called Robinhood’s decision amid the frenzy to halt some trades of GameStop “unacceptable.” Representative Rashida Tlaib, a Michigan Democrat who is also on the committee, called the decision “beyond absurd” and accused the app of “blocking the ability to trade to protect” hedge funds.
The frustration with Robinhood and the hedge funds reflects a national backlash against the power of the nation’s largest corporations. In the last decade, a growing number of lawmakers from both political parties have charged that American business has failed their constituents, setting off a political reckoning from Wall Street to Silicon Valley.
The anger against Robinhood is bipartisan. Senator Ted Cruz, Republican of Texas, shared Ms. Ocasio-Cortez’s comments in agreement in January. “Free the traders on @RobinhoodApp,” Senator Marsha Blackburn, Republican of Tennessee, said in a tweet of her own.
Return at noon for video and live coverage of the hearing.
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