Obama: Authorities will investigate Wall Street’s wild swing

WASHINGTON (AP) - President Obama said Friday that U.S. regulatory authorities are evaluating the "unusual market activity" on Wall Street this week...

TheGrio Staff

May 7, 2010

WASHINGTON (AP) — President Barack Obama said Friday that U.S. regulatory authorities are evaluating the “unusual market activity” on Wall Street this week with an eye toward protecting investors and keeping something like that from happening again.

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

Surrounded by his entire economic team on the White House driveway as he commented on Friday’s monthly jobs report, Obama said that while his administration is taking steps to boost hiring “we’re also mindful of other economic factors that can emerge,” such as a plunging stock market and fears of a spreading overseas financial crisis.

He said regulators would make public their findings and recommendations public.

Obama also said he spoke Friday with German Chancellor Angela Merkel about the economic situation in Europe.

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European leaders were meeting Friday in Brussels in an attempt to persuade world markets that the spiraling contagion from Greece’s debt crisis would not spread to other countries with vulnerable state finances such as Portugal and Spain and derail Europe’s economic recovery. The meeting originally was called to sign off on a $140 million emergency bailout for Greece; Germany is contributing more than $28 billion to the package.

Obama said he and Merkel agreed on the importance of a strong policy response by the affected countries as well as a strong financial response from the international community, including the U.S.

“I made clear that the United States supports these efforts and will continue to cooperate with European authorities and the (International Monetary Fund) during this critical period,” Obama said.

The White House said Obama is being updated regularly on the situation in Greece during his daily briefings.

The IMF board of directors planned to meet Sunday in Washington to approve a $40 billion loan to Greece as part of the rescue package.