House Committee fails to find smoking gun on market plunge

The U.S. House of Representatives Financial Services Subcommittee on Capital Markets failed to pinpoint any single cause for last week's stock market plummet that sent the in a half hour.

The committee held , during which members questioned the heads of the U.S. Securities and Exchange Commission, New York Stock Exchange and Nasdaq in an attempt to gain some insight on what caused the precipitous drop.

The Dow fell to 9,872 points in a half hour last Thursday. As quickly as the market dropped, it suddenly and dramatically reversed itself, recovering 543 points in approximately a minute and a half, to 10,415.65, and ended the day down 347.80 points from the previous day's close.

SEC Chairman Mary Schapiro told the committee she was "committed to finding effective solutions in the very near term," and also said an existing agreement with major exchanges was in the process of strengthening trading restraints with regards to big market fluctuations.

"The events of last week are unacceptable. The SEC is engaging in a comprehensive review and will take necessary steps to implement additional safeguards to prevent the type of unusual trading activity that occurred briefly last week," she told the committee.

Committee Chairman Paul Kanjorski (D-Penn.) said that after hearing the testimony from the SEC, he felt "a lot more secure."