FINRA GameStop Probe May Put Firms' Compliance In Focus
Law360 (February 9, 2021, 7:58 PM EST) -- The Financial Industry Regulatory Authority is likely investigating the social media activity of brokers tied to the GameStop stock-trading frenzy, which could ultimately lead to scrutiny of firms' supervisory procedures and require fine-tuning of their compliance policies.
The erratic trading that sent GameStop's share price soaring to a high of $483 on Jan. 28 before crashing down was fueled in part by a Reddit board where users promoted the stock to counter Wall Street firms that had bet against it. After weeks of wild fluctuations, the stock closed Tuesday at just over $50.
No wrongdoing has yet been shown. But Boston-area Reddit...
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