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Friday, May 7, 2010

Obama Orders Probe Of Wild Stock Market Swing, Talks Jobs

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Obama: Regulatory Authorities Investigating Wild Stock Market Swing

President Obama said Friday that regulatory authorities are "evaluating" Thursday's wild swings in the stock market with an eye toward protecting investors and preventing something like that from happening again.

A computerized sell-off sent the Dow Jones industrial average plummeting by a near-record 1,000 points within about a half-hour Thursday afternoon. Fear that the European debt crisis could spread was a factor. The market regained two-thirds of that loss before the end of trading.

Obama characterized the swing as "unusual market activity" and said that regulatory authorities would make findings of their review public along with recommendations for "appropriate action."

The Securities and Exchange Commission and the Commodity Futures Trading Commission said they were working with other regulators to review "unusual trading activity," the Wall Street Journal reported.

The major U.S. stock exchanges said they were looking for trading glitches and examining potentially erroneous trades in multiple stocks. Major exchanges said they will cancel erroneous trades that occurred during the selloff, the newspaper reported.

Obama said he spoke Friday with German Chancellor Angela Merkel about the economic situation in Europe. He says they agreed on the need for a strong response by the affected countries and the international community.

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Sources: CNBC, Fox News, Google Maps

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