Demand answers for the American people on the fifth anniversary of the historic stock market crash
Washington, D.C. – In a letter to Congressional leadership, former Senator Ted Kaufman (D-DE) and President and CEO of Better Markets Dennis Kelleher today called on Congress to create an independent commission to investigate the so-called “Flash Crash.” May 6th marks the fifth anniversary of that historic stock market crash.
“Five years ago on May 6th, in just 36 dizzying minutes, the US stock market lost almost $1 trillion of value and just as quickly regained it. This so-called ‘Flash Crash’ starkly exposed how fragile and vulnerable our markets are to lightning fast, unregulated, dark trading, often referred to as ‘high frequency trading.’ While many investigations were done years ago into this unexpected, mysterious and gut-wrenching crash, none were very convincing and many questions remained. The recent shocking arrest of a lone day trader in London, allegedly for being ‘a cause’ of the Flash Crash, proves those concerns were valid and highlights the urgent need for a more thorough and credible investigation,” Mr. Kelleher said.
“It is unacceptable that five years after the Flash Crash we still have more question than answers. Until we fully understand the causes of the Flash Crash, we’ll never be able to implement real reforms that protect investors and markets from future crashes. Only a Congressionally-created independent commission with full funding and subpoena power will be able to get those answers, recommend reforms and begin to restore some trust in our markets. With tens of millions of families, businesses and, indeed, our entire economy dependent on our markets every day, the American people deserve convincing answers,” Senator Kaufman said.
The letter detailing the request sent to Congressional leaders today by Senator Kaufman and Mr. Kelleher can be viewed here.
Better Markets is an independent, nonprofit, nonpartisan organization that promotes the public interest in financial reform in the domestic and global capital and commodity markets. Better Markets advocates for transparency, oversight and accountability with the goal of a stronger, safer financial system that is less prone to crisis and failure thereby eliminating or minimizing the need for more taxpayer funded bailouts. To learn more, visit www.bettermarkets.com.