E-Trade May Ban Keith Gill of GameStop Meme Stock Fame

E-Trade is considering a possible ban of Keith Gill, the meme stock trader who has been responsible for sending GameStop's stock soaring....
E-Trade May Ban Keith Gill of GameStop Meme Stock Fame
Written by Matt Milano
  • E-Trade is considering a possible ban of Keith Gill, the meme stock trader who has been responsible for sending GameStop’s stock soaring.

    Gill, aka “Roaring Kitty,” helped launch GameStop’s stock into the stratosphere in 2020 by posting to Reddit’s Wall Street Bets subreddit. GameStop’s stock went from $18 to $483 in a matter of weeks, costing Wall Street short-sellers billions of dollars.

    The incident sparked an SEC investigation, although the agency found no evidence of any wrongdoing.

    “January’s events gave us an opportunity to consider how we can further our efforts to make the equity markets as fair, orderly, and efficient as possible,” SEC Chair Gary Gensler said at the time. “Making markets work for everyday investors gets to the heart of the SEC’s mission. I would like to thank the staff for bringing their expertise to this important report, and for their ongoing work on to address the issues that January’s events raised.”

    In the wake of the investigations, Gill largely dropped off the radar before reappearing on social media in mid-May, once again sparking a GameStop rally.

    According The Wall Street Journal, E-Trade is considering booting Gill from its platform in response to his latest efforts to boost GameStop. Gill reportedly posted screenshots of his E-Trade account, showing he he owns $140 million worth of shares, for a gain of $85.5 million.

    As WSJ points out, Gill’s activities are once again under investigation. While the SEC’s initial investigation ruled there was no wrongdoing, that decision was in recognition of the fact that the rally was driven by individual investors.

    The Massachusetts securities division is investigating Gill, and the SEC is once again reviewing Gill’s trading. Because of Gill’s background as a registered broker with Mutual Life Insurance in Massachusetts, MassMutual had to pay a $4 million fine over his 2020 activities.

    At this point there is nothing definitive about E-Trade’s plans. Only time will tell if the company does boot Gill or drops the matter.

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