New York (HedgeCo.net) – “Getting to the bottom of the facts that led to this collapse of the market is as important as any single enforcement action the SEC may undertake this year,” said G. William Currier, a partner in hedge fund law firm White Collar Practice at White & Case LLP in Washington, DC, and a former senior official in the Enforcement Division of the SEC from 1999 to 2005.

The prestige of the SEC, and confidence in US financial markets themselves hang very much in the balance as regulators continue to search for the true cause of last Thursday’s 1,000-point drop in the Dow Jones Industrial Average, including the 600-point decline in a few minutes.

“Unexplained dislocations and volatility of this dimension are inconsistent with the transparency and predictability world markets and investors expect from well-regulated US exchanges,” added Currier. “It would be a blow to the SEC’s prestige, even its expertise, let alone US markets themselves, if the SEC fails to isolate the causes and to take remedial steps to prevent a reoccurrence of this massive collapse in the future.”

Alex Akesson
Editor for HedgeCo.net
alex@hedgeco.net
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