Ilhan Omar jumps into GameStop controversy and hits out at Wall Street: ‘If they cut off the public, send them to prison’

The latest headlines from our reporters across the US sent straight to your inbox each weekday

Your briefing on the latest headlines from across the US

Please enter a valid email address

Please enter a valid email address

SIGN UP

I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy

Rep. Ihan Omar has called for Wall Street billionaires who stop the public from buying shares to face prison, as she joined the controversy surrounding GameStop.

The progressive Democrat has become the latest to publicly criticise the investment trading app Robinhood, who on Friday reversed a decision to suspend trading on GamesStop stock.

GameStop, an American video game retailer, has been targeted by investors on the r/wallstreetbets Reddit thread who have bought-up massive amounts of GameStop shares.

That was thought to have handed heavy losses to investors and hedge funds on Wall Street, who previously bet against the retailer, with a process known as a short squeeze.

As shares of GameStop continued to surge on Friday, Rep. Omar hit out at attempts by Robinhood and other stock trading apps to stop the public buying shares.

“Americans are told to invest in the market. But when they start to threaten the profits of billionaires, strange things happen,” she wrote in a tweet.

The Democrat went on to suggest that anyone on Wall Street who “used their power” to stop public stock trading should be sent to prison.

She wrote: “If anyone on Wall Street with short positions in particular stocks used their power to cut off the public from buying those stocks, send them to prison.”

Congressional lawmakers on both sides have called on Robinhood to say why public stock trading was suspended on its app on Thursday, with Rep. Alexandria Ocasio-Cortez leading calls for an investigation.

Republican senator Ted Cruz agreed with her.

Also on Thursday, Democratic senator Elizabeth Warren, wrote to the US Securities and Exchange Commission asking what it planned to do in response to the market shakeup.

In a statement on Friday, the agency said it would watch out for any “potential wrongdoing”  surrounding Robinhood and GameStop shares, and that it would review restrictions on buying.

It added that the commission “will closely review actions taken by regulated entities that may disadvantage investors or otherwise unduly inhibit their ability to trade certain securities.”

Short sellers face an estimated $19bn (£13.8bn) in losses due to the short squeeze on GameStop, although many are said to be waiting until share prices fall before they return them.  

Responding to the criticism, Robinhood CEO Vlad Tenev said on Friday that the investment app’s restriction of GameStop trading was in the best interests of his company and users and “to protect the firm and protect our customers”.

“Robinhood is a brokerage firm, we have lots of financial requirements," he added, in an appearance on CNBC.