The man bucked the powers that be and proved he can take on the big shots of Wall Street. He cost them billions of dollars thanks to using his influence on Reddit to go head to head with the big trading houses. And he won, so far. But now the regulators and pressure comes in from all sides.
A report on Monday indicating that the online broker E*Trade may consider banning Keith Gill, the meme-stock influencer known for igniting the frenzy around GameStop shares in 2021, has sparked significant backlash on social media. Keith Gill, who resumed his online presence after a three-year hiatus, has become a focal point of controversy once again.
E*Trade Considers Banning “Roaring Kitty” Keith Gill from Platform
— Valuetainment Media (@ValuetainmentTV) June 3, 2024
E*Trade’s parent company, Morgan Stanley, declined to comment on the report or on the numerous social media messages calling for a boycott of the brokerage platform. This incident draws parallels to 2021 when Robinhood faced severe criticism for restricting the purchase of certain heavily traded stocks, including GameStop, due to market volatility.
One user on X, posting under the handle @welp007, expressed frustration with E*Trade’s actions, accusing the broker of succumbing to behind-the-scenes pressures and denying a retail investor the opportunity to achieve wealth. “@etrade singled out their own customer @TheRoaringKitty taking marching orders from some smoke-filled back room somewhere and tried to say ‘nope, you don’t get to be rich, you don’t get to join the elites,'” the user wrote on Monday evening.
Many commentators on social media perceive the ongoing Roaring Kitty/GameStop saga as emblematic of the broader struggle between small retail investors and major Wall Street players, including hedge funds and trading firms. This sentiment was echoed in numerous posts on both X and Reddit, where Gill is known as RoaringKitty and DeepFuckingValue, respectively. Several users shared screenshots of their requests to close their E*Trade accounts, though Reuters could not independently verify the authenticity of these screenshots, and the posters did not respond to requests for comment.
“I don’t see how it’s that much different from a Morgan Stanley analyst talking their book,” says Tom Sosnoff as E-Trade reportedly considers removing Keith Gill from the platform. “I’m pretty sure that every other brokerage firm… would scoop him up in a heartbeat.” pic.twitter.com/OlmjCd5Ziq
— Last Call (@LastCallCNBC) June 4, 2024
A Reddit user, FalseDifficulty2340, called for a collective response from retail investors, suggesting that all retail customers should leave E*Trade’s platform if Gill is banned. “If they’re gonna ban the kitty, all of retail should leave their platform,” the user declared.
The situation has also led to speculation that rival brokerage firms might be eager to welcome Gill as a client if E*Trade follows through with the ban. The anticipation of a potential migration of accounts has added another layer of intrigue to the unfolding drama.
The tension between retail investors and established financial institutions has been a recurring theme in recent years, particularly since the GameStop trading frenzy of 2021. During that period, retail investors rallied together on forums like Reddit’s WallStreetBets to drive up the price of GameStop shares, catching many institutional investors off guard and leading to significant financial repercussions for those who had shorted the stock.
20240603 KEITH GILL ‘ROARING KITTY’
Discussion. E*Trade Considering Removing Keith Gill ‘Roaring Kitty’ From It’s Trading Platform pic.twitter.com/3RzBRqjPJa— Robert Waloven (@comlabman) June 3, 2024
The potential banning of Keith Gill by E*Trade touches on the broader issues of market fairness and the power dynamics between individual investors and large financial entities. As retail investors continue to harness the power of social media and online forums to influence market movements, the traditional boundaries and rules of investing are being tested and redefined.
Major Points:
- E*Trade is reportedly considering banning Keith Gill, the influencer known for the GameStop trading frenzy in 2021.
- The news has triggered significant backlash on social media, with users calling for a boycott of E*Trade.
- This incident is reminiscent of the 2021 controversy when Robinhood restricted purchases of volatile stocks, angering retail investors.
- Many social media users express solidarity with Gill, suggesting they will close their E*Trade accounts if he is banned.
- The situation highlights ongoing tensions between retail investors and major Wall Street institutions, emphasizing issues of market fairness and power dynamics.
RM Tomi – Reprinted with permission of Whatfinger News
