Also in this playlist...
This transcript is automatically generated
-- remain a hard working to craft that financial regulatory bill but questions still loom large over the flash crash on May six.
When the Dow took a dive of nearly a thousand points.
Delaware senator Ted Kaufman is pushing the SEC and congress for more answers he joins us.
Now from DC first of all senator I don't wanna stand your bag on this at all but it is breaking news at the moment it's very important we understand if you don't want to deal -- it.
But the issue of the oil moratorium -- it has just been lifted by this federal judge what's your opinion on that.
Well my in my opinion is obviously the federal judges looked into it and I think fairly administration when you go forward with.
That the problem I have with a state it is is.
I'm not sure how many of those rigs out there are safe.
And I mean you look at the fact that we have not had people out there inspecting the rigs.
The rig that that blew up was the worst case but I'm just worried there's a bunch of -- out there in the and -- -- -- -- We just don't know what their status as attorneys say we don't have a concrete was poured we don't know.
Whether they have batteries in the in the in the equipment that there's so -- engineering questions that you have to ask.
He just wonder starting all those rigs back up again we cannot stand another.
You know another -- problem like we have a -- Well senator I believe you're completely correct especially when you say that that we don't know yet that the government could have written this.
This complaint a lot better turning -- we've spoken with nuclear tests -- policy on obesity New York became a specific reason there's something wrong.
With the stabilizers or what have you and now Robert Gibbs is -- that they will appeal of course so.
Do you get the sense that they will do that in a timely fashion and that.
-- -- -- -- -- -- -- Yeah I think this is this is my number one problem right now and I think that this is -- number one concern I'm sure that the they'll be appealing this thing a very very quickly all right now back and thank you very much for taking the opportunity to talk about that -- -- flash -- are we getting closer understanding what happened.
No not really I basically the problem -- -- -- you know I've been talking about this I've been on your show it you know.
For every year and that is we just flat out don't know what's happening.
We've moved from a period where 40% of the -- were in the last four years 40% of -- -- drivers to trade at 70%.
We really don't have a whole lot idea what goes on inside these fifteen months and went from basic to mark the fifty market.
We don't know what the customers' names on the trades we don't know what the time of the trade was I mean we are we -- we are just in a bad place.
First couple of bad place for for keeping track of what's gonna be be a cop makes it look good things wrong.
But also trying to find out what happened afterwards -- what happened on May -- were still here we're not -- get it.
I said on May seventh I don't know whether we'll ever get -- because we flat out don't collect -- information we need in order to find out what happened.
Yet senator the FCC came through with some regulations and then they -- -- recently tested on a day where there was an Arab trade I believe the doctor Washington Post Co.
-- -- luckily it either jumped or fell 10% in two quick about a time right and that the flash crash new SEC rules kick into place and weren't so so now.
Well we have we did with the regulations are dubious if not I don't well first.
Now know why I look I think that that I said this again on I'm not saying this because I'm so Smart because I'm not.
Understand because I said a year ago I think a year ago he got to stop put band aids on this brought home.
We give the -- don't have circuit breakers if you you've dealt with a mark out of it did when -- don't -- -- -- went out today.
Oh yes circuit breakers I think -- -- -- there Mary Schapiro said we gotta take a hard look at market structure she said the other -- -- we got take a look at speed.
If you said the two major objectives were capital formation of protecting long term investors these are all things that -- for a different.
And pace of the problem is is.
We have no idea what's happening in our markets now and the fact is that we we have markets where there is no required prepare normally market.
One of the big arguments for Pearl -- -- trading was liquidity and I'm big on liquidity.
We need transparency and fairness but even on liquidity.
We have people that just said they turn off the computers and walked away.
This is I mean this is this is this is just a very very very serious problem glad to see.
The CFTC US if you have a joint panel talk about we gotta get all of this we have to scare them this terrible meltdown on May sixth.
In another scare on June 6 -- Diebold.
The stock dropped 35% six seconds.
You know where there's tennis all kinds of mass marketers say I'm a big market guy I believe in markets the market is sending its all kinds of message that's a problem.
Well here's another message being sent the markets now down triple digits that we we better undiscovered -- look at it.
Sat down even burglars I don't know I don't know I have but whether to direct connect hit it out but -- Listen -- David -- was Ivan Ivan -- is -- over here so it's that it OK okay thank you so much for coming here -- a -- -- appreciate -- throughout anytime money.
Filter by section