Yellen, US Treasury Secretary, Calls Emergency Meeting on GameStop... Likely to be Held as Early as the 3rd

Janet Yellen, U.S. Secretary of the Treasury
Photo by Reuters Yonhap News

[Asia Economy Reporter Byunghee Park] Janet Yellen, the U.S. Treasury Secretary, is reported by major foreign media on the 2nd (local time) to have called an emergency meeting this week regarding the stock price fluctuations of GameStop.

The meeting is expected to include a large number of financial supervisory agencies related to major financial market regulations. A Treasury Department official stated that Secretary Yellen will convene representatives from the Securities and Exchange Commission (SEC), the Federal Reserve (Fed), the New York Fed, and the Commodity Futures Trading Commission (CFTC), and that the emergency meeting could be held as early as the 3rd.

Recently, a short-selling war between hedge funds and individual investors caused extreme volatility in GameStop's stock price. The stock price, which was below $20 at the end of last year, soared to an intraday high of $480 on the 28th of last month, and has since experienced a sharp decline. On the 2nd, GameStop's stock price closed at $90 on the New York Stock Exchange, down 60% compared to the previous day. The intraday low dropped to $74.

This sharp volatility in GameStop's stock price shook the entire New York stock market, raising concerns among investors. Jen Psaki, White House Press Secretary, said that as GameStop's stock price surged, "Treasury Secretary Janet Yellen and the Treasury team are closely monitoring the situation related to GameStop stock."

Earlier, Treasury Department spokesperson Alexandre Lamanna stated in a press release, "Secretary Yellen believes there is a need to discuss the recent volatility in the financial markets and places importance on balancing fair and efficient market operations with investor protection."

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