The Biden administration is sending a clear signal to Wall Street that the industry’s Washington cops are back on the beat. Regulators and federal prosecutors are probing potential misconduct in the GameStop trading frenzy, as the Securities and Exchange Commission moves to restore harsher penalties on wrongdoers.
Attorneys in the Justice Department’s criminal division are conducting a wide-ranging investigation into possible market manipulation from the trading surrounding GameStop, and recently issued a subpoena to Robinhood as part of that, a person familiar with the matter said.
The probe, though, appears to be in its early stages.
SEC acting chair Allison Herren Lee in a radio interview earlier this month
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