- The Robinhood app has restricted users from buying new stocks in GameStop, AMC, Blackberry, Nokia, Bed Bath & Beyond, and other companies, citing “recent volatility.”
- It currently only allows users to sell off their existing shares of the selected stocks, essentially helping push those stock prices back down.
- The app WeBull made a similar move a short time later, prompting users to flood both apps with negative reviews. Robinhood specifically now also faces two customer lawsuits.
- Lawmakers have criticized the moves as well, with Reps. Alexandria Ocasio-Cortez (D-Ny.) and Rashida Tlaib (D-Mi.) calling for an investigation by the House Financial Services Committee. Notably, Sen. Ted Cruz (R-Tx.) has supported those calls.
Update: As of Thursday afternoon, Robinhood has announced that it will resume limited trading of securities on Friday. Meanwhile, WeBull has now lifted its trading restrictions.
Robinhood Restricts Trade of GameStop, AMC, & Others
In an extremely controversial move, the popular trading app Robinhood restricted users from being able to buy new stock for GameStop, AMC, Blackberry, Nokia, Bed Bath & Beyond, and more on Thursday.
WeBull, another free-to-trade brokerage app, made a similar call hours later when it blocked users from buying shares of GameStop, AMC, and Koss. In separate statements, each company cited volatility in the market as catalysts for their decisions.
While users can’t buy new stock, both apps are still allowing users to sell off their existing shares. In effect, that means Robinhood and WeBull are only allowing moves that will push stocks in companies like GameStop back down.
Both moves come as the U.S. stock market has been heavily upended by a group of Redditers from the subreddit WallStreetBets (WSB). Notably, they’ve been leveraging a process known as short-squeezing to force hedge funds to take massive losses in these stocks.
While short-squeezing is by no means a new tactic, the efforts by WSB over the last week have been wholly unprecedented. For example, GameStop’s share price surged to $470 Thursday morning, but just half a year ago, its shares were only priced at $4.
Its success then led to a number of other stocks getting short-squeezed, though none of them have come close to matching GameStop’s metrics. In fact, Thursday, many of those stocks fell and appeared to re-approach their pre-squeeze numbers (with the notable exception of the joke cryptocurrency Dogecoin).
Robinhood and WeBull Users Outraged
The loss of Robinhood and WeBull for WallStreetBets traders, as well as those jumping onto the hype fueled by their actions, represents a significant setback.
For one, both apps are extremely popular. Coupled with that popularity, they also allow users to purchase stocks without any fees attached. Notably, that feature has been instrumental in driving up GameStop’s price as traditional brokerage firms generally charge fees.
It’s also why news of Robinhood’s decision has far out-shadowed similar restrictions put on some forms of trading by traditional firms like TD Ameritrade and Charles Schwab.
Online, users of Robinhood were quick to criticize the company and accuse it of abandoning its mission: “to democratize finance for all.”
As criticism continued to pour in from all corners of the Internet, users began to review-bomb the app on Google Play, and Robinhood has now even been slapped with at least two class-action lawsuits from customers.
Before WeBull announced it would follow Robinhood’s example, many users lamented that they would be switching to WeBull; however, that still represented a problem for GameStop’s stock. Two hours after Robinhood’s announcement, shares of GameStop plummeted to $130. Meanwhile, a new WeBull account would take several days to activate.
Lawmakers have also criticized the move, with Reps. Alexandria Ocasio-Cortez (D-Ny.) and Rashida Tlaib (D-Mi.) calling for an investigation by the House Financial Services Committee. Notably, Sen. Ted Cruz (R-Tx.) has supported those calls.
Shares of GameStop eventually closed at just under $200 on Thursday.
Florida School Says Students Vaccinated Against COVID-19 Must Stay Home for 30 Days
The school falsely claimed that people who have just been vaccinated risk “shedding” the coronavirus and could infect others.
Centner Academy Vaccination Policy
A private school in Florida is now requiring all students who get vaccinated against COVID-19 to quarantine for 30 days before returning to class.
According to the local Miami outlet WSVN, Centner Academy wrote a letter to parents last week describing COVID vaccines as “experimental” and citing anti-vaccine misinformation.
“If you are considering the vaccine for your Centner Academy student(s), we ask that you hold off until the Summer when there will be time for the potential transmission or shedding onto others to decrease,” the letter reportedly stated.
“Because of the potential impact on other students and our school community, vaccinated students will need to stay at home for 30 days post-vaccination for each dose and booster they receive and may return to school after 30 days as long as the student is healthy and symptom-free.”
The Centers for Disease Control and Prevention (CDC) has debunked the false claim that those newly vaccinated against COVID-19 can “shed” the virus.
According to the agency’s COVID myths page, vaccine shedding “can only occur when a vaccine contains a weakened version of the virus,” but “none of the authorized COVID-19 vaccines in the United States contain the live virus that causes COVID-19. This means that a COVID-19 vaccine cannot make you sick with COVID-19.”
In fact, early research has suggested that vaccinated people are less likely to spread the virus than unvaccinated people.
Beyond that, unvaccinated people are more likely to spread COVID in general because they are much more likely to get the virus than vaccinated people. According to recently published CDC data, as of August, unvaccinated people were six times more likely to get COVID than vaccinated people and 11 times more likely to die from the virus.
Centner Academy Continues Spread of Misinformation
In a statement to The Washington Post Monday, Centner Academy co-founder David Centner doubled down on the school’s new policy, which he described as a “precautionary measure” based on “numerous anecdotal cases that have been in circulation.”
“The school is not opining as to whether unexplained phenomena have a basis in fact, however we prefer to err on the side of caution when making decisions that impact the health of the school community,” he added.
The new rule echoes similar efforts Centner Academy has made that run counter to public health guidance and scientific knowledge.
In April, the school made headlines when its leadership told vaccinated school employees that they were not allowed to be in contact with any students “until more information is known” and encouraged employees to wait until summer to get the jab.
According to The New York Times, the following week, a math and science teacher allegedly told students not to hug their vaccinated parents for more than five seconds.
The outlet also reported that the school’s other co-founder, Leila Centner, discouraged masking, but when state health officials came for routine inspections, teachers said they were directed in a WhatsApp group to put masks on.
See what others are saying: (WSVN) (The Washington Post) (Business Insider)
Katie Couric Says She Edited Ruth Bader Ginsburg Quote About Athletes Kneeling During National Anthem
Couric said she omitted part of a 2016 interview in order to “protect” the justice.
Kate Couric Edited Quote From Justice Ginsburg
In her upcoming book, journalist Katie Couric admitted to editing a quote from Supreme Court Justice Ruth Bader Ginsberg in 2016 in order to “protect” Ginsberg from potential criticism.
Couric interviewed the late justice for an article in Yahoo News. During their discussion, she asked Ginsburg about her thoughts on athletes like Colin Kaepernick kneeling for the national anthem to protest racial inequality.
“I think it’s really dumb of them,” Ginsburg is quoted saying in the piece. “Would I arrest them for doing it? No. I think it’s dumb and disrespectful. I would have the same answer if you asked me about flag burning. I think it’s a terrible thing to do, but I wouldn’t lock a person up for doing it. I would point out how ridiculous it seems to me to do such an act.”
According to The Daily Mail and The New York Post, which obtained advance copies of Couric’s book “Going There,” there was more to Ginsburg’s response. Couric wrote that she omitted a portion where Ginsburg said the form of protest showed a “contempt for a government that has made it possible for their parents and grandparents to live a decent life…Which they probably could not have lived in the places they came from.“
Couric Says She Lost Sleep Making Choice
“As they became older they realize that this was youthful folly,” Ginsberg reportedly continued. “And that’s why education is important.“
According to The Daily Mail, Couric wrote that the Supreme Court’s head of public affairs sent an email asking to remove comments about kneeling because Ginsburg had misspoken. Couric reportedly added that she felt a need to “protect” the justice, thinking she may not have understood the question. Couric reached out to her friend, New York Times reporter David Brooks, regarding the matter and he allegedly likewise believed she may have been confused by the subject.
Couric also wrote that she was a “big RBG fan” and felt her comments were “unworthy of a crusader for equality.” Because she knew the remarks could land Ginsburg in hot water, she said she “lost a lot of sleep” and felt “conflicted” about whether or not to edit them out.
Couric was trending on Twitter Wednesday and Thursday as people questioned the ethics behind her choice to ultimately cut part of the quote. Some thought the move showed a lack of journalistic integrity while others thought revealing the story now harmed Ginsburg’s legacy.
See what others are saying: (New York Post) (The Daily Mail) (Insider)
Biden Administration Orders ICE To Halt Workplace Raids
The Department of Homeland Security will now focus on targeting employers who exploit undocumented workers, instead of carrying out raids that dissuade those workers from reporting labor violations.
DHS Reverses Worksite Raid Policy
The Biden administration announced Tuesday that it was ordering Immigration and Customs Enforcement (ICE) to stop workplace raids.
The move marks a reversal from Trump administration policies that have been strongly criticized by immigration activists who argue the efforts created fear in immigrant communities and dissuaded them from reporting labor violations or exploitative employment practices.
In addition to stopping the raids, Department of Homeland Security (DHS) Secretary Alejandro Mayorkas said in a memo that the administration will refocus enforcement efforts to instead target “employers who exploit unauthorized workers, conduct illegal activities or impose unsafe working conditions.”
Mayorkas added that the immigration agencies housed in DHS will have the next 60 days to identify harmful existing policies and come up with new ones that provide better deportation protections for workers who report their employers.
In the Tuesday memo, the secretary argued that shift of focus will “reduce the demand for illegal employment by delivering more severe consequences to exploitative employers” and “increase the willingness of workers to report violations of law by exploitative employers and cooperate in employment and labor standards investigation.”
Labor Market Implications
The new policy comes at a time when the U.S. is experiencing a critical labor shortage, including in many sectors that rely on immigrant labor.
Some companies that use undocumented workers pay them wages that are far below the market rate, which is not only exploitative but also undercuts competitors.
According to Mayorkas, the pivot to employer-based enforcement will help protect American businesses.
“By exploiting undocumented workers and paying them substandard wages, the unscrupulous employers create an unfair labor market,” he said in the memo. “They also unfairly drive down their costs and disadvantage their business competitors who abide by the law.”
It is currently unclear how effective the new efforts will be, but historical precedent does not paint an optimistic picture.
The Biden administration’s efforts closely mirror a similar move by the Obama administration, which attempted to reverse workplace raids authorized under President George W. Bush by targetting those who employ undocumented workers rather than the workers themselves.
That effort, however, still led to thousands of undocumented workers being fired.