The SEC is reviewing social media posts and message board posts for signs of potential fraud in frenzied trading of GameStop and other companies, according to a new report. The agency’s investigation is happening alongside scrutiny of trading data to evaluate whether such posts were part of a manipulative effort to drive up share prices. The agency is specifically searching for evidence that fraud was committed. Acting chair Allison Herren Lee said in a statement earlier this week that the agency was looking at, “compliance with regulatory obligations, adequate and consistent risk disclosure, and determining if any fraudulent or manipulative behavior has occurred.” While the SEC doesn’t regulate social media or message boards, the agency has brought cases against firms for social media pitfalls. Two robo-advisers were previously charged with violating rules on recordkeeping, antifraud, advertising and compliance. But pressure is growing for regulators to address the ramifications of the recent trading saga. As a result, firms should ensure that social media channels approved for business purposes are included in their recordkeeping and supervisory processes.
"firms should ensure that social media channels approved for business purposes are included in their recordkeeping and supervisory processes."???!! REALLY?? HOW??? How are they going to include the "recordkeeping and supervisory process"??? Specifically HOW are they going to supervise every single message that gets posted on the forums, message boards, podcasts? So what, from now, stocktwit, Reddit, ET, Twitter, Instagram, FB, Youtube all going to have to verify the truthfulness of every single video, message, chart, diagram, screenshot that's posted to make sure it's not fraud?? HOW can you prove it's not fraud? They need people to reveal their account number and name on the screenshot of their account to show their trades or P/L? That's major gross violation of privacy!! And also what about those CNBC programs, internet radio investment shows, investment books and articles, newsletters, internet investment sites, how are they going to be included in the "recordkeeping and supervisory processes"? To me these could all be breeding ground for "fraudulent and manipulative behaviours" to occur. And CNBC was where Melvin Capital and Andrew Left had been on numerous times to advocate the shorting of GME. And every single Jim Cramer's colourful show, how do we know he's not being paid in the background? How do we know he is not committing any fraud and manipulative behaviour?? If SEC is going to scrutinize on "fraud and manipulative behaviours" then it should scrutinize on ALL media outlets for that. "But pressure is growing for regulators to address the ramifications of the recent trading saga." Yes of course the "pressure" is growing for regulators. Wonder where the "pressure" is coming from? LOL And for all those times that the shorters pushed for shorting of stocks and shorted GME all the way from $20 to $4 when investors were trying to take over the company's board to make changes to turn the company around, it's funny there was no "pressure" for regulators then to address the ramifications of those shorting??!! And all of sudden now when some MM's and hedge funds have lost money and retail traders have made some profit??!! All of sudden "pressure is growing for regulators to address the ramifications??" LOL Ridiculous!!
Your hero Roaring Kitty is being sued as a pump and dump manipulator, he is so fucked!!! https://nypost.com/2021/02/17/roaring-kitty-keith-gill-defends-his-gamestop-posts-amid-lawsuit/