Morgan Stanley (NYSE:MS) is reportedly considering banning Keith Gill, a.k.a. 'The Roaring Kitty,' from its E*Trade electronic trading platform due to allegations of his involvement in manipulating meme stock prices through his social media activities.
Keith Gill purchased a significant volume of GameStop options on E*Trade, according to a Monday Wall Street Journal report.
In a Reddit post shared Sunday, Gill revealed that he holds over $115.7 million in shares of the video game retailer. Known for his large following on Reddit, especially among users of r/WallStreetBets, Gill shared a screenshot on the r/SuperStonk subreddit indicating that, in addition to the shares, he possesses about $65.7 million in call options set to expire on June 21, with a strike price of $20 each.
This disclosure reignited the hype around meme stocks on Monday, leading to a 23% increase in GameStop Corp. (NYSE:GME) shares and a 9.7% rise in AMC Entertainment Holdings Inc. (NYSE:AMC) shares.
Read also: Dave Portnoy Announces 'Over A Million Of GameStop, About 700 Of AMC' Holdings And Is Now Eyeing This Stock
Morgan Stanley Mulls Gill's Expulsion From E*Trade
Within E*Trade and Morgan Stanley, there are growing concerns about Gill's potential to manipulate stock prices for his own benefit, the Journal report said.
Unnamed insiders familiar with the discussions told the WSJ the debate revolves around whether his actions constitute manipulation and whether the firm is prepared to face the potential backlash from his substantial following if they decide to remove him from the platform.
Gill made a return to social media platform X last month after a three-year absence, posting a picture of a man leaning forward in his seat.
This action triggered significant volatility in many meme-related stocks. Between May 13 and 14, GameStop shares surged nearly 180%, marking the biggest two-day jump since the initial meme stock run in early 2021.
Read now: Roaring Kitty Just Posted A Reverse Uno Card: What Does It Signal For GameStop, AMC Shares?
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