Unfair to Characterize Markets as Rigged: Altman

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April 8 (Bloomberg) -- Roger Altman, founder and executive chairman at Evercore, talks with Betty Liu about the recent scrutiny of high-frequency trading on Bloomberg Television’s “In The Loop.”

Altman, former deputy treasury secretary under bill clinton.

I want to ask you about michael lewis.

We have talked quite a bit about different pieces of literature that you are involved in or reading.

Have you read michael lewis' "flash boys." i read the excerpt, but not the book.

What is your view on the firestorm that has been created from michael lewis -- by the way, an area of the mark through the average investor does not know much about.

It has become a flashpoint on whether stock markets are rigged.

Michael lewis is a talented writer.

He has got a wonderful, will release a clever, knack for picking out an issue and drawing attention to it.

I do not know the answer to the question about frat running.

If it -- question about front running.

Most people in wall street but not in the middle of high frequency trading do not know the answer either.

It will take some time before various inquiries will determine whether or not it is true there is front running.

Are the markets as a whole rigged, i don't think that is fair at all.

These allegations, are they going to deter investors -- retail or other?

I doubt it.

There is a strong argument that these changes have reduced the transaction cost to investors rather than raise them.

I would be surprised if it deterred investment flows or changed investment behavior but it is an interesting question.

I do not know the answer.

We did see some of the online brokers like e trade and tg ameritrade -- shares declined.

They plunged based on the knee-jerk reaction.

Given the fact that the sec will be looking into it.

Other regulators are now focused on this.

What does that say about our regulatory system that an author comes out with a book and then regulatory authorities are prompted to do something?

What does that say?

That aside, there is a knee-jerk reaction that if someone says it is rigged that creates a psychological effect on investors.

I do not think the authorities have any choice given the amount of attention that he has very cleverly shined on this question.

Just to look like they are doing something?

One needs to respond to something like this.

The flash crash, you have to respond and get to the bottom.

It is good that they have started to do that.

Let's see if they do, what they come up with.

In terms of whether shares of td ameritrade and e trade should be off, i am skeptical this will deter investors.

I doubt it.

I think fundamentals are what drive investors in terms of are they optimistic or not.

Fearful events -- ukraine and so forth.

Bigger you that occupy consciousness rather than this.

I would be surprised if this deter flows into equities.

We will see.

Is this occurring, front runn ing?

I do not know the answer.

Roger altman from ever core.

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