Essay The Securities and Exchange Commission
History Honors- Per 5
The Securities and Exchange Commission
In 1934 the Securities Exchange Act created the SEC (Securities and Exchange Commission) in response to the stock market crash of 1929 and the Great Depression of the 1930s. It was created to protect U.S. investors against malpractice in securities and financial markets. The purpose of the SEC was and still is to carry out the mandates of the Securities Act of 1933: To protect investors and maintain the integrity of the securities market by amending the current laws, creating new laws and seeing to it that those laws are enforced.
During the 1920s, approximately 20 million Americans took advantage of post-war prosperity by purchasing …show more content…
Joseph Kennedy proved to be a highly effective leader of the SEC. As one of his first official duties he delivered a national radio address: "We of the SEC do not regard ourselves as coroners sitting on the corpse of financial enterprise We do not start with the belief that every enterprise is crooked and that those behind it are crooks." At this Wall Street realized that regulation didn't necessarily mean persecution. Although Kennedy only stayed one year as commissioner, he was most effective in establishing the credibility of the organization. Historian John Steele Gordon described his time in office: "Kennedy knew where the bodies were buried. But he