MassMutual Fined for Failure to Monitor GameStop Saga Star

MassMutual Fined for Failure to Monitor GameStop Saga Star

The settlement, announced Thursday by Federal Secretary William Galvin, focuses on the actions of Keith Gill, an employee of MassMutual’s subsidiary from April 2019 to January 2021. GameStop’s share price soared nearly 800% in a week, ending his term. Like a horde of small, novice investors piled up in the shock and awe of experts.

Massachusetts regulators are fining MassMutual $4 million and ordering it to overhaul its social media policies after accusing the company of failing to supervise an employee whose online cheerleading of GameStop’s stock helped launch the frenzy that shook Wall Street earlier this year.

While Gill’s job at MassMutual was to create teaching materials for current and potential clients, regulators posted over 250 hours of video on YouTube and invested through accounts unrelated to the company. He states that he has sent at least 590 tweets about GameStop.

Massachusetts regulators claimed that MassMutual was subject to specific supervisory requirements because it was unable to monitor the social media accounts of Gil and other employees registered as broker-dealer agents in the state. I quoted the message. The MassMutual unit where Gil worked has prohibited broker-dealer agents from discussing generic securities on social media.
In an online message, Gil often talked about why he was optimistic about owning a stake in GameStops, despite having struggled for years. He used the Roaring Kitty and Deep Value nicknames, with a taunt in the middle of the latter, and attracted tens of thousands of followers. He also posted regular updates to Reddit about his GameStop holdings, which swelled to tens of millions of dollars.

Gil and the red headband he wore in many of his videos became so central to the GameStop phenomenon that he testified at a parliamentary hearing about it. So he professed again, I like stocks, a statement that became a rally cry for GameStop investors on forums on the internet.

Regulators also said MassMutual did not have rational policies and procedures, among other things, to monitor the personal transactions of registered agents. For example, to monitor over-trading, the MassMutual unit where Gil worked had a rule to flag transactions over $ 250,000 on a single security made on all accounts by a registered representative. was. According to regulators, Gil sold $ 750,000 worth of GameStop options and bought $ 703,600 in GameStop shares on January 1, but his employer’s transaction monitoring system flagged both transactions. I didn’t stand.
In the settlement, MassMutual did not acknowledge or deny the findings of state regulators. It said in a statement that it was pleased to put this issue behind us, avoiding the costs and distractions associated with protracted proceedings.

Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
Former State Fair Finance Director Arrested, Probation for Theft
Former State Fair Finance Director Arrested, Probation for Theft
The APA also noted $54,812.29 in payments to CITI from the RKBB account. In the letter to the fair board, the auditor said that RKBB received one check written ...
Tech Watchdog Campaign Challenges Big Tech to Hide Behind Small Businesses – TechCrunch
Tech Watchdog Campaign Challenges Big Tech to Hide Behind Small Businesses – TechCrunch
Public sentiment also seems to be moving into a phase where people widely acknowledge that even free tech platforms extract a cost, whether that’s in the form ...
SD Card Speeds are Limited to 250 MB/s, Peak Brightness for SD Content is Limited, and eGPUs are Still Not Supported, among other new MacBook Pro tidbits
SD Card Speeds are Limited to 250 MB/s, Peak Brightness for SD Content is Limited, and eGPUs are Still Not Supported, among other new MacBook Pro tidbits
According to Apple, 16-inch MacBook Pro models equipped with the M1 Max processor now have a new High Power Mode that boosts performance for intense, ...
Pink Tee event aimed at increasing money to beat breast cancer
Pink Tee event aimed at increasing money to beat breast cancer
“When someone is diagnosed, it’s a tragic, horrible situation and many don’t know where to turn- so they turn to The Caring Place,” stated Stephanie Parker — ...
Another Fantasy Sports Betting Firm Gets License from Louisiana
Another Fantasy Sports Betting Firm Gets License from Louisiana
Participants in Louisiana’s fantasy sports competitions have to be at least 21 years old. The games are permitted only in parishes where voters authorized ...
UK Emboldens Booster Jabs, Resists New Virus Restrictions
UK Emboldens Booster Jabs, Resists New Virus Restrictions
Britain is relying heavily on vaccines to keep the virus at bay during the fall and winter months. Almost 80% of people 12 and over in the U.K. have received ...
Canada discreetly raises general travel advice related to COVID-19
Canada discreetly raises general travel advice related to COVID-19
The new advisories can be found on the government’s Travel Advice and Advisory website. A blanket advisory against all cruise travel remains in place.  ...
West Virginia DHHR Reports 25 New COVID-19-Related Deaths |  WV News
West Virginia DHHR Reports 25 New COVID-19-Related Deaths | WV News
CURRENT ACTIVE CASES PER COUNTY: Barbour (86), Berkeley (663), Boone (141), Braxton (59), Brooke (60), Cabell (423), Calhoun (47), Clay (34), Doddridge (30), ...
BIZ BYTES: Bettendorf  News Network to Host Jobs Fair |   News and Economy
BIZ BYTES: Bettendorf News Network to Host Jobs Fair | News and Economy
Get the latest local business news delivered FREE to your inbox weekly. IowaWORKS will be on hand to provide job-seeking tips, resume advice and overview ...
COVID-19 hospitalizations in Colorado near April 2020 levels
COVID-19 hospitalizations in Colorado near April 2020 levels
You can watch the news conference on FOX31 NOW in the player above. What is the COVID-19 death rate of vaccinated vs. unvaccinated? Close Modal COVID-19 ...
Show next
Compsmag - Latest News from tech, business and health
Logo