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Wall Street Reins In Hedge Funds’ Short Bets on Meme Stocks

  • BofA, Citi, Jefferies quietly limit some clients’ short sales
  • GameStop, AMC volatility also catches lawmakers’ attention
Photographer: Mark Kauzlarich/Bloomberg
Updated on

Wall Street’s top brokers are quietly tightening their rules for who can bet against retail traders’ most-popular meme stocks.

Goldman Sachs Group Inc., Bank of America Corp., Citigroup Inc. and Jefferies Financial Group Inc. are among firms that have adjusted their risk controls at prime-brokerage operations, according to people familiar with the moves. The banks are trying to protect themselves against fallout from extreme surges and dips that have characterized trading in companies including AMC Entertainment Holdings Inc., MicroVision Inc. and GameStop Corp.