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GameStop frenzy has Washington teasing action on Reddit vs. Wall Street

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A number of Democrats and Republicans united in opposition this week to the strict limits imposed by Robinhood and other online stock brokerages on the purchasing of GameStop and other stocks swept up in a Reddit-fueled trading frenzy.

Disparate members of Congress like Alexandria Ocasio-Cortez, D-N.Y., Ro Khanna, D-Calif., Ted Lieu, D-Calif., Ken Buck, R-Colo., and Sens. Pat Toomey, R-Pa. and Ted Cruz, R-Texas, were among those who criticized the move, with many calling for hearings that Democratic leaders say will soon take place in both the House and Senate as what began as an internet movement continues to roil Wall Street.

Lawmakers trained attention on the volatility surrounding GameStop’s stock as several others this week. The stock climbed from $4 only a few months ago to more than $400 this week, juiced by an online movement not dissimilar to others that have broadly altered the political landscape in recent years. At the same time, hedge funds that made large bets on GameStop’s stock cratering — known as “shorting” — began to pile up big losses. Then the brokerages instituted limits, leading to charges of collusion with the larger financial entities facing big losses.

Robinhood’s co-founder, Vladimir Tenev, said hours after the change that it had no choice but to limit the stocks as it and its peers were forced by obligations imposed by federal regulators. The decision “was not made on the direction of any market maker we route to or other market participants,” he said, adding that notions to the contrary amounted to “misinformation.”

Jan. 29, 202101:19

For both progressive and more conservative members, there was a sense that the nation was watching a populist insurgency win out, however temporarily, against a so-called rigged system. Yet there is not broad consensus on policy goals to pursue in response to the brokerages limiting the ability for users to trade in the handful of stocks.

“There’s clearly bipartisan concern,” Michael Steel, a former spokesman to then-House Speaker John Boehner, R-Ohio, told NBC News. “I think the question is whether there are effective public policy changes that make sense and would make a difference.”

For the left, the restrictions were viewed as further evidence of Wall Street malfeasance, prompting demands for greater regulation. On the right, lawmakers decried the limits as flouting the free market, while comparing the curtailment to other claims of big tech “censorship.”

That dynamic — surface-level agreement that gives way to existing partisan divides — mirrors the partisan gaps in other areas in which the parties have found some shared gripes, most notably with the major U.S. tech companies.

House Financial Services Committee Chairwoman Maxine Waters, D-Calif., and incoming Senate Banking Committee Chairman Sherrod Brown, D-Ohio, said their committees would both soon hold hearings to address the ordeal. Democrats and progressives also said the episode makes confirmation of President Joe Biden’s selection for Securities and Exchange Commission chair, Gary Gensler, all the more pressing.

“Bipartisan support for an investigation is good, but at the end of the day, if you believe someone like Ted Cruz will actually stand up to Wall Street, I have a GameStop short position I’d like to sell you,” said Tim Hogan, a Democratic consultant and former spokesperson for Sen. Amy Klobuchar’s presidential campaign.

Sen. Elizabeth Warren, D-Mass., one of the leading Democrats on issues of financial regulation, wrote to the SEC’s acting commissioner on Friday questioning the extent to which a combination of large investors and online message boards affected the fluctuation of GameStop’s stock, if any of those practices ran afoul of existing laws, and if the “wild swings” in GameStop and other companies’ value “present any systemic concerns for financial systems or the stock market?”

“There are rich people on both sides of this, people who are trying, it appears, to manipulate this market,” Warren told CNBC on Thursday. “And that’s what we don’t know the details of.”

Like many of the forces shaping American politics in recent years, the Reddit forum, r/WallStreetBets — which describes itself as “Like 4chan found a Bloomberg Terminal” and is credited with originating much of the trading frenzy — sells the idea of the little guy taking on the big establishment. Amid a pandemic that has triggered a surge in retail trading, its audience has grown substantially in recent months.

“You know something is about to go down when most members of Congress are United over Wall Street trying” to abuse us, one user wrote Thursday, linking to a tweet from Lieu. Another wrote about how he was not particularly moved into entering the GameStop trade until it “morphed into a class movement.”

“I’m a big populist and think we need big changes in this country, especially a transfer of wealth and power from the elites to the people,” the user wrote. “When this morphed into a class movement I became obsessed.”

The wild ascension of the GameStop traders has been cheered on by some of the world’s wealthiest individuals, like Tesla CEO Elon Musk and the Winklevoss twins. Former President Donald Trump’s eldest son, Donald Trump Jr., has also sought to cast himself as an ally of the Redditors.

Andy Surabian, a Republican strategist, said people are “probably underestimating how big of a moment this was,” adding the episode likely “did more to hurt Big Tech in the eyes of people who weren’t already gunning for them, than anything I’ve seen in recent history.”

Appearing to sense a shift in political winds, Robinhood listed a job Friday for a “Federal Affairs Manager” to “focus on federal advocacy and government affairs” dealing with laws and regulations.

“The job listing doesn’t mention this, but you’ll also get to know the House Financial Services Committee,” Rep. Jamaal Bowman, D-N.Y., tweeted, along with a crying-laughing emoji.

Source:- NBC News

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‘Disgraceful:’ N.S. Tory leader slams school’s request that military remove uniform

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HALIFAX – Nova Scotia Premier Tim Houston says it’s “disgraceful and demeaning” that a Halifax-area school would request that service members not wear military uniforms to its Remembrance Day ceremony.

Houston’s comments were part of a chorus of criticism levelled at the school — Sackville Heights Elementary — whose administration decided to back away from the plan after the outcry.

A November newsletter from the school in Middle Sackville, N.S., invited Armed Forces members to attend its ceremony but asked that all attendees arrive in civilian attire to “maintain a welcoming environment for all.”

Houston, who is currently running for re-election, accused the school’s leaders of “disgracing themselves while demeaning the people who protect our country” in a post on the social media platform X Thursday night.

“If the people behind this decision had a shred of the courage that our veterans have, this cowardly and insulting idea would have been rejected immediately,” Houston’s post read. There were also several calls for resignations within the school’s administration attached to Houston’s post.

In an email to families Thursday night, the school’s principal, Rachael Webster, apologized and welcomed military family members to attend “in the attire that makes them most comfortable.”

“I recognize this request has caused harm and I am deeply sorry,” Webster’s email read, adding later that the school has the “utmost respect for what the uniform represents.”

Webster said the initial request was out of concern for some students who come from countries experiencing conflict and who she said expressed discomfort with images of war, including military uniforms.

Her email said any students who have concerns about seeing Armed Forces members in uniform can be accommodated in a way that makes them feel safe, but she provided no further details in the message.

Webster did not immediately respond to a request for comment.

At a news conference Friday, Houston said he’s glad the initial request was reversed but said he is still concerned.

“I can’t actually fathom how a decision like that was made,” Houston told reporters Friday, adding that he grew up moving between military bases around the country while his father was in the Armed Forces.

“My story of growing up in a military family is not unique in our province. The tradition of service is something so many of us share,” he said.

“Saying ‘lest we forget’ is a solemn promise to the fallen. It’s our commitment to those that continue to serve and our commitment that we will pass on our respects to the next generation.”

Liberal Leader Zach Churchill also said he’s happy with the school’s decision to allow uniformed Armed Forces members to attend the ceremony, but he said he didn’t think it was fair to question the intentions of those behind the original decision.

“We need to have them (uniforms) on display at Remembrance Day,” he said. “Not only are we celebrating (veterans) … we’re also commemorating our dead who gave the greatest sacrifice for our country and for the freedoms we have.”

NDP Leader Claudia Chender said that while Remembrance Day is an important occasion to honour veterans and current service members’ sacrifices, she said she hopes Houston wasn’t taking advantage of the decision to “play politics with this solemn occasion for his own political gain.”

“I hope Tim Houston reached out to the principal of the school before making a public statement,” she said in a statement.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Saskatchewan NDP’s Beck holds first caucus meeting after election, outlines plans

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REGINA – Saskatchewan Opposition NDP Leader Carla Beck says she wants to prove to residents her party is the government in waiting as she heads into the incoming legislative session.

Beck held her first caucus meeting with 27 members, nearly double than what she had before the Oct. 28 election but short of the 31 required to form a majority in the 61-seat legislature.

She says her priorities will be health care and cost-of-living issues.

Beck says people need affordability help right now and will press Premier Scott Moe’s Saskatchewan Party government to cut the gas tax and the provincial sales tax on children’s clothing and some grocery items.

Beck’s NDP is Saskatchewan’s largest Opposition in nearly two decades after sweeping Regina and winning all but one seat in Saskatoon.

The Saskatchewan Party won 34 seats, retaining its hold on all of the rural ridings and smaller cities.

This report by The Canadian Press was first published Nov. 8, 2024.

The Canadian Press. All rights reserved.

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Nova Scotia election: Liberals say province’s immigration levels are too high

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HALIFAX – Nova Scotia‘s growing population was the subject of debate on Day 12 of the provincial election campaign, with Liberal Leader Zach Churchill arguing immigration levels must be reduced until the province can provide enough housing and health-care services.

Churchill said Thursday a plan by the incumbent Progressive Conservatives to double the province’s population to two million people by the year 2060 is unrealistic and unsustainable.

“That’s a big leap and it’s making life harder for people who live here, (including ) young people looking for a place to live and seniors looking to downsize,” he told a news conference at his campaign headquarters in Halifax.

Anticipating that his call for less immigration might provoke protests from the immigrant community, Churchill was careful to note that he is among the third generation of a family that moved to Nova Scotia from Lebanon.

“I know the value of immigration, the importance of it to our province. We have been built on the backs of an immigrant population. But we just need to do it in a responsible way.”

The Liberal leader said Tim Houston’s Tories, who are seeking a second term in office, have made a mistake by exceeding immigration targets set by the province’s Department of Labour and Immigration. Churchill said a Liberal government would abide by the department’s targets.

In the most recent fiscal year, the government welcomed almost 12,000 immigrants through its nominee program, exceeding the department’s limit by more than 4,000, he said. The numbers aren’t huge, but the increase won’t help ease the province’s shortages in housing and doctors, and the increased strain on its infrastructure, including roads, schools and cellphone networks, Churchill said.

“(The Immigration Department) has done the hard work on this,” he said. “They know where the labour gaps are, and they know what growth is sustainable.”

In response, Houston said his commitment to double the population was a “stretch goal.” And he said the province had long struggled with a declining population before that trend was recently reversed.

“The only immigration that can come into this province at this time is if they are a skilled trade worker or a health-care worker,” Houston said. “The population has grown by two per cent a year, actually quite similar growth to what we experienced under the Liberal government before us.”

Still, Houston said he’s heard Nova Scotians’ concerns about population growth, and he then pivoted to criticize Prime Minister Justin Trudeau for trying to send 6,000 asylum seekers to Nova Scotia, an assertion the federal government has denied.

Churchill said Houston’s claim about asylum seekers was shameful.

“It’s smoke and mirrors,” the Liberal leader said. “He is overshooting his own department’s numbers for sustainable population growth and yet he is trying to blame this on asylum seekers … who aren’t even here.”

In September, federal Immigration Minister Marc Miller said there is no plan to send any asylum seekers to the province without compensation or the consent of the premier. He said the 6,000 number was an “aspirational” figure based on models that reflect each province’s population.

In Halifax, NDP Leader Claudia Chender said it’s clear Nova Scotia needs more doctors, nurses and skilled trades people.

“Immigration has been and always will be a part of the Nova Scotia story, but we need to build as we grow,” Chender said. “This is why we have been pushing the Houston government to build more affordable housing.”

Chender was in a Halifax cafe on Thursday when she promised her party would remove the province’s portion of the harmonized sales tax from all grocery, cellphone and internet bills if elected to govern on Nov. 26. The tax would also be removed from the sale and installation of heat pumps.

“Our focus is on helping people to afford their lives,” Chender told reporters. “We know there are certain things that you can’t live without: food, internet and a phone …. So we know this will have the single biggest impact.”

The party estimates the measure would save the average Nova Scotia family about $1,300 a year.

“That’s a lot more than a one or two per cent HST cut,” Chender said, referring to the Progressive Conservative pledge to reduce the tax by one percentage point and the Liberal promise to trim it by two percentage points.

Elsewhere on the campaign trail, Houston announced that a Progressive Conservative government would make parking free at all Nova Scotia hospitals and health-care centres. The promise was also made by the Liberals in their election platform released Monday.

“Free parking may not seem like a big deal to some, but … the parking, especially for people working at the facilities, can add up to hundreds of dollars,” the premier told a news conference at his campaign headquarters in Halifax.

This report by The Canadian Press was first published Nov. 7, 2024.

— With files from Keith Doucette in Halifax

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