Warner: 'Lack of oversight' contributed to stock freefall

Sen. Mark Warner (D-Va.) warned Thursday that a sudden stock market drop this afternoon was in part the product of a "lack of oversight."

Warner, who made millions by investing in technology and telecommunication, urged greater attention to high-frequency trading, errors in which the senator said had contributed to a drop of almost 1,000 points in the Dow Industrial average at one point today.

"Part of this precipitous drop seems that there was a technology glitch on an order that was put in that had no safeguard or backstop to prevent it," Warner said in a Senate floor speech. "I think we saw in real, breathing time today."

The market recovered most of the losses, which have been attributed by analysts to the fallout from the Greek debt crisis, but also reportedly an errant trade in which an individual trader entered "b" for "m" in "million" when trading Procter & Gamble shares today.

"This was not the result of a market, it was the result of, I believe, the lack of oversight," Warner said.

The Virginia senator urged including an examination of high-frequency trades in the financial reform legislation currently before the Senate.

"There was a warning sign shot across the bow today," Warner said.

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