MassMutual fined US$4 million for trading in “Roaring Kitty” meme stock

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Financial and market supervision updates

The American insurance company MassMutual was fined $4 million by the securities regulator in his home state of Massachusetts for failing to properly supervise Keith Gill. million Of new day traders pushed GameStop stock higher.

Jill, whose forehead is often decorated with a red bandanna, became Central figure In the meme stock craze that fascinated this country, this made him stand a Congressional Committee Hearing last February.

The Massachusetts Securities Regulatory Agency stated that when Gill was employed by a brokerage subsidiary of MassMutual, the company failed to monitor the use of social media by him or other agents or to review “excessive transactions” in his personal accounts.

Jill also took the alias DeepFuckingValue and has a job at MassMutual, producing educational materials for clients. The regulator pointed out that he recorded and shared more than 250 hours of trading strategy videos on YouTube during his work at MassMutual from April 2019 to January last year.

“It is clear that MassMutual is not as diligent as it should be in supervising its employees,” said Massachusetts Federal Secretary William Galvin (William Galvin). “It took the media less than a day to identify the person behind Roaring Kitty’s post, and his own employer did not notice his online role.”

Calvin said that MassMutual agreed to conduct an independent review of its social media guidelines and will undergo a three-year audit.

“Wantong Mutual is pleased to leave the matter behind and avoid the costs and distractions associated with protracted litigation,” the company said.

Jill became a central figure in the meme stock boom, posting his trading activities at the troubled video game retailer GameStop to the Reddit social media platform.

His transaction was closely watched and even imitated by others, who watched in awe as the company’s stock price soared from approximately $19 at the beginning of the year to $483 a few weeks later.

Turbulent activity against hedge funds and Financial constraints Robinhood is an online trading platform favored by many retail day traders, prompting it to raise billions of dollars in haste.

Galvin’s office also discovered that Gill executed nearly 1,700 transactions for three other unnamed individuals, some of which were worth almost twice the $250,000 limit set by MassMutual for its employees. The regulator said the company failed to detect the transaction.

MassMutual did not acknowledge or deny the findings of the investigation, and was ordered to pay an additional $750,000 in fines for failing to register other agents, and required 478 of them to be registered.

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