E*Trade Considers Banning Meme-Stock Influencer Keith Gill

Morgan Stanley-owned online broker E*Trade is reportedly considering banning Keith Gill, the influencer widely known for his role in the GameStop trading frenzy of 2021.

The Wall Street Journal’s report on this potential ban has triggered significant backlash on social media platforms.

Background:

Keith Gill, known online as “Roaring Kitty” on X and “DeepFuckingValue” on Reddit, resumed his online activity after a three-year hiatus.

His posts are credited with sparking the intense trading activity in GameStop shares, leading to massive market volatility and significant financial impacts for retail and institutional investors alike.

Social Media Reaction:

The social media response to the news of E*Trade’s possible action against Gill has been swift and fierce.

Many users on platforms like X and Reddit have expressed their outrage, perceiving the move as an attempt by a major brokerage to suppress a retail investor who disrupted traditional market dynamics.

• X User @welp007: “E*Trade singled out their 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.'”
• Reddit User FalseDifficulty2340: “If they’re gonna ban the kitty, all of retail should leave their platform.”

Call for Boycotts:

Numerous users have called for a boycott of E*Trade; some have posted screenshots of their account closure requests. While Reuters could not independently verify the authenticity of these screenshots, the sentiment of dissatisfaction is palpable across both platforms.

The reaction refers to similar incidents in 2021, notably when Robinhood restricted the purchase of certain volatile stocks, including GameStop.

This decision faced intense scrutiny and criticism for allegedly protecting large institutional investors at the expense of retail traders.

Potential Implications:

The controversy surrounding E*Trade’s potential ban on Gill underscores the tension between retail investors and traditional financial institutions.

Many retail investors see this as another example of perceived unfair practices by large Wall Street entities against small, independent traders.

Response from E*Trade:

Morgan Stanley, the parent company of E*Trade, has declined to comment on the report or the social media backlash.

There is no official statement on whether the ban will proceed or what criteria are being used to make such a decision.