SEC, Congress Investigate Thursday Stock Market Boomerang
Today, the Securities and Exchange Commission met with the heads of the major U.S. stock exchanges, including the New York Stock Exchange and alternative venues like Nasdaq and the Chicago Board Options Exchange. They discussed Thursday’s stock exchange event, where the Dow Jones Industrial Average dropped 1,000 points before rebounding to a 348-point loss, all in a matter of minutes. The regulator said it has not yet determined what happened, and today’s meeting did not come to any conclusions.
Congress is taking the issue up this week as well. Tomorrow, the same executives who met with the SEC today will appear at a hearing of the House Financial Services Capital Markets Subcommittee, called by Rep. Paul Kanjorski (D-Pa.). And last week, Sens. Ted Kaufman (D-Del.) and Mark Warner (D-Va.) asked the SEC and the Commodity Futures Trading Commission to investigate the market event in Sen. Chris Dodd’s (D-Conn.) financial regulatory reform bill.