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You are here: Home / 1 big thing we still don’t know about the GameStop rally

1 big thing we still don’t know about the GameStop rally

A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here . London (CNN Business)An army of amateur traders looking to run up the price of struggling stocks has jolted Wall Street and forced the world to pay attention. But as investors brace for more volatility, an important question needs to be answered: How have big banks and other financial titans been trading the action? The dominant narrative of the past week has been of a motley crew of day traders coordinating on platforms like Reddit and Discord to buy shares of distressed companies such as GameStop (GME) and AMC Entertainment (AMC), squeezing hedge funds who had bet that prices would fall. Yet Wall Street is notorious for trying to capitalize on market volatility —and it’s unlikely to have sat back and let Reddit have all the fun. “We know what the Redditors were doing,” Alexis Goldstein, senior policy analyst at the advocacy group Americans for Financial Reform, told me. “What was the rest of Wall Street doing? I don’t think we know that yet.” Read More It’s clear that the rush into GameStop shares did cause trouble… Read full this story

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