Updated with correction, May 7
Two Democratic senators are pushing to address Thursday's stock market plunge in a financial markets overhaul bill being debated in the Senate.
Sen. Mark Warner, D-Va., said he and Sen. Ted Kaufman, D-Del., are working with the Senate Banking Committee to ensure the measure addresses technological factors that may have contributed to the nearly 1,000-point intraday plunge in the Dow Jones industrial average. The market recovered much of the loss before closing.
“Part of this precipitous drop took place because it appears that there was a technology glitch on an order put in that had no backguard or safeguards to stop it,” Mr. Warner said on the Senate floor after the market fell. “We at least need to have more facts. … If we don't make sure this is part of the mix, I think we're not acting appropriately.”
Mr. Warner said he asked Senate Banking Committee Chairman Christopher Dodd, D-Conn., “to make sure” the legislation provides for a study or other provision to address the plunge, which briefly erased more than $1 trillion in market value.
President Barack Obama on Friday said federal regulators will examine Thurday's “unusual market activity” to seek the cause and make sure it doesn't happen again.
“The regulatory authorities are evaluating this closely,” Mr. Obama said at the White House. “They will make findings of their review public along with recommendations for appropriate action.”
