Roaring Kitty's GameStop trades face scrutiny from E*Trade and regulators

From QuiverQuant: 2024-06-03 17:12:34

E*Trade is considering banning Keith Gill, also known as “Roaring Kitty,” from its platform due to concerns about potential stock manipulation related to his recent purchases of GameStop options. Gill’s social media posts have led to a surge in GameStop shares, prompting internal discussions at E*Trade and its owner, Morgan Stanley. Regulatory bodies like the SEC are reviewing the situation. The outcome remains uncertain as E*Trade grapples with managing Gill’s influence while maintaining regulatory standards and customer trust.

Gill’s influence on meme stocks, particularly GameStop, has led to a 21% surge in shares. The situation highlights concerns about market manipulation and the impact of social media on stock prices. Morgan Stanley faces a delicate decision on whether to ban Gill, balancing potential backlash from the trading community. E*Trade’s systems temporarily crashed due to the surge in demand triggered by Gill’s social media activity. As a former registered broker, Gill’s significant social media following poses a complex challenge for E*Trade and Morgan Stanley as they navigate regulatory and reputational risks.



Read more at QuiverQuant: Roaring Kitty GameStop Trades Under Scrutiny by E*Trade and Regulators