Jacob Frenkel (Member and Government Investigations and Securities Enforcement Practice Group Chair, Washington, D.C.) recently spoke with a variety of domestic and international major media outlets regarding the saga unfolding on Wall Street involving Gamestop, popular social media site Reddit, and online stock trading apps, including Robinhood. Major media regularly seek Jacob's expert commentary and perspective based on his having served as a Senior Counsel in the SEC's Enforcement Division. Jacob' commentary focused on the unusual market volatility in GameStop's share price, ultimately resulting in Robinhood and other firms temporarily limiting trading of the stock. Although the SEC is monitoring the situation, Jacob expressed a somewhat controversial view that the SEC should have considered suspending trading of GameStop stock, which the agency has legal authority to do for up to 10 days. Merely monitoring the situation without taking action is, as Jacob told the Associated Press, "like putting safety experts in a permanent front-row seat in front of a runaway roller coaster." Speaking to CNBC's Fast Money, Jacob said, "The SEC has the administrative ability to suspend trading when there are questions about the accuracy of publicly available information....One of the bases for a trading suspension is a possible or potential stock manipulation." To read or view more of Jacob's analysis, click the links below.
- Associated Press (in the Detroit News): GameStop soars again; Wall Street bends under the pressure
- Agence France Presse (in The Straits Times): Epic battle over GameStop as 'nerds' take on Wall Street
- Reuters: EXPLAINER-Why regulators may scrutinize GameStop's Reddit-driven retail stock surge
- Reuters: Famed GameStop bull 'Roaring Kitty' is a Massachusetts financial advisor
- BBC: Gamestop: 'Failing' firm soars in value as amateurs buy stock
- Wall Street Journal CFO: Stock-Market Frenzy Offers Some CFOs a Chance to Cash In
- KNX 1070 Radio Los Angeles: Will the GameStop trading frenzy really revolutionize Wall Street, or was this just an expensive prank?
- CNBC Fast Money: Former SEC lawyer on Reddit revolution
- CNN International First Move: Former SEC Senior Counsel Jacob Frenkel Weighs in on GameStop & AMC Stock Gains
- CNBC Squawk on the Street: SEC should utilize its trading suspension authority: Fmr. SEC counsel
- Yahoo Finance Live: Dickinson Wright Chair on GameStop frenzy: 'The SEC should have used its trading suspension authority'
- Dough.com's Social Currency Podcast: Are WallStreetBets Traders In Trouble? - Former SEC Lawyer Explains
- Cheddar's Between Bells: Examining Robinhood's Actions With Former SEC Lawyer
- NPR: What the Gamestop Saga Reveals about Wall Street