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E-Trade is debating internally whether to ban Keith Gill — the meme stock trader who just revealed his massive position in GameStop — over concerns about potential market manipulation. The Wall Street Journal reported Monday.
The brokerage firm is owned by Morgan StanleyThe Wall Street Journal cited people familiar with the company’s internal deliberations as saying that no decision had been made.
Early Monday morning, GameStop stock prices fell on a weekly basis after Gill, known as “DeepF——–Value” on Reddit, posted a screenshot showing that his portfolio may hold a large amount of GameStop common stock and call options. rose in early trading. The screenshot shows that the meme stock leader holds 5 million shares of GameStop stock, as well as 120,000 call options with a strike price of $20 expiring on June 21, with a purchase price of approximately $5.68 per share.
E-Trade declined to comment to CNBC, noting that “we do not publicly discuss the individual activities of our clients.”
According to the Wall Street Journal, Morgan Stanley’s global financial crimes unit and outside counsel began discussing whether Gill’s account should be canceled because the firm was monitoring Gill’s account activity.
The brokerage found that Gill bought call options in May before posting on social media platform
The meme stock frenzy of 2021 sparked a series of congressional hearings, including testimony from Gill surrounding broker practices and gamifying retail stock trading. Gill also faces several class-action lawsuits, one of which accuses him of posing as a novice trader despite being a licensed professional.
Jill worked at MassMutual in 2019 and 2020 as a marketing and financial education employee.
— Click here to read The Wall Street Journal story.
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