A report on U.S. Securities and Exchange Commission

Joseph P. Kennedy Sr, the inaugural Chairman of the SEC
U.S. Securities and Exchange Commission headquarters in Washington, D.C., near Union Station

Independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929.

- U.S. Securities and Exchange Commission

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The TED spread (in red), an indicator of perceived risk in the general economy, increased significantly during the financial crisis, reflecting an increase in perceived credit risk. The TED spread spiked up in July 2007, remained volatile for a year, then spiked even higher in September 2008, reaching a record 4.65% on October 10, 2008.

Financial crisis of 2007–2008

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Severe worldwide economic crisis that occurred in the early 21st century.

Severe worldwide economic crisis that occurred in the early 21st century.

The TED spread (in red), an indicator of perceived risk in the general economy, increased significantly during the financial crisis, reflecting an increase in perceived credit risk. The TED spread spiked up in July 2007, remained volatile for a year, then spiked even higher in September 2008, reaching a record 4.65% on October 10, 2008.
World map showing real GDP growth rates for 2009 (countries in brown were in recession)
Share in GDP of U.S. financial sector since 1860
The New York City headquarters of Lehman Brothers
US inequality from 1913 to 2008.
People queuing outside a Northern Rock branch in the United Kingdom to withdraw their savings during the financial crisis.
Federal Funds Rate compared to U.S. Treasury interest rates
US subprime lending expanded dramatically 2004–2006
A graph showing the median and average sales prices of new homes sold in the United States between 1963 and 2016 (not adjusted for inflation)
US current account deficit.
Leverage ratios of investment banks increased significantly between 2003 and 2007.
Household debt relative to disposable income and GDP.
IMF Diagram of CDO and RMBS
Diagram of CMLTI 2006 – NC2
A protester on Wall Street in the wake of the AIG bonus payments controversy is interviewed by news media.
Securitization markets were impaired during the crisis
Global copper prices

In 2004, the U.S. Securities and Exchange Commission relaxed the net capital rule, which enabled investment banks to substantially increase the level of debt they were taking on, fueling the growth in mortgage-backed securities supporting subprime mortgages. The SEC conceded that self-regulation of investment banks contributed to the crisis.

Securities Exchange Act of 1934

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Law governing the secondary trading of securities (stocks, bonds, and debentures) in the United States of America.

Law governing the secondary trading of securities (stocks, bonds, and debentures) in the United States of America.

The 1934 Act also established the Securities and Exchange Commission (SEC), the agency primarily responsible for enforcement of United States federal securities law.

Many of the largest investment banks, including JPMorgan Chase, belong to the Bulge Bracket.

Investment banking

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Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments.

Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments.

Many of the largest investment banks, including JPMorgan Chase, belong to the Bulge Bracket.

An advisor who provides investment banking services in the United States must be a licensed broker-dealer and subject to U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA) regulation.

Credit rating agency

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Company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely principal and interest payments and the likelihood of default.

Company that assigns credit ratings, which rate a debtor's ability to pay back debt by making timely principal and interest payments and the likelihood of default.

As the market grew beyond that of traditional investment banking institutions, new investors again called for increased transparency, leading to the passage of new, mandatory disclosure laws for issuers, and the creation of the Securities and Exchange Commission (SEC).

Philadelphia, Germantown & Norristown Railroad stock certificate, 1852

Securities Act of 1933

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Enacted by the United States Congress on May 27, 1933, during the Great Depression and after the stock market crash of 1929.

Enacted by the United States Congress on May 27, 1933, during the Great Depression and after the stock market crash of 1929.

Philadelphia, Germantown & Norristown Railroad stock certificate, 1852
The floor of the New York Stock Exchange in 1908
A prospectus in the US
US Securities and Exchange Commission Office in Washington, DC.
NASDAQ MarketSite TV studio.

It requires every offer or sale of securities that uses the means and instrumentalities of interstate commerce to be registered with the SEC pursuant to the 1933 Act, unless an exemption from registration exists under the law.

Financial Industry Regulatory Authority

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Private American corporation that acts as a self-regulatory organization (SRO) that regulates member brokerage firms and exchange markets.

Private American corporation that acts as a self-regulatory organization (SRO) that regulates member brokerage firms and exchange markets.

The U.S. government agency that acts as the ultimate regulator of the U.S. securities industry, including FINRA, is the U.S. Securities and Exchange Commission (SEC).

Official campaign portrait, 1944

Franklin D. Roosevelt

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American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945.

American politician and attorney who served as the 32nd president of the United States from 1933 until his death in 1945.

Official campaign portrait, 1944
Eleanor and Franklin with their first two children, 1908
Roosevelt in 1944
Roosevelt supported Governor Woodrow Wilson in the 1912 presidential election.
Theodore Roosevelt was Franklin Roosevelt's distant cousin and an important influence on his career.
Roosevelt as Assistant Secretary of the Navy, 1913
Cox and Roosevelt in Ohio, 1920
Rare photograph of Roosevelt in a wheelchair, with Fala and Ruthie Bie, the daughter of caretakers at his Hyde Park estate. Photo taken by his cousin Margaret Suckley (February 1941).
Gov. Roosevelt with his predecessor Al Smith, 1930
Results of the 1930 gubernatorial election in New York
Roosevelt in the early 1930s
1932 electoral vote results
Roosevelt signs the Social Security Act into law, August 14, 1935
1936 re-election handbill for Roosevelt promoting his economic policy
1936 electoral vote results
Roosevelt with Brazilian President Getúlio Vargas and other dignitaries in Brazil, 1936
The Roosevelts with King George VI and Queen Elizabeth, sailing from Washington, D.C., to Mount Vernon, Virginia, on the USS Potomac during the first U.S. visit of a reigning British monarch (June 9, 1939)
Foreign trips of Roosevelt during his presidency
1940 electoral vote results
Roosevelt and Winston Churchill aboard HMS Prince of Wales for 1941 Atlantic Charter meeting
Territory controlled by the Allies (blue and red) and the Axis Powers (black) in June 1942
The Allies (blue and red) and the Axis Powers (black) in December 1944
1944 electoral vote results
Official portrait of President Roosevelt by Frank O. Salisbury, c. 1947
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Other major 1930s legislation and agencies implemented under Roosevelt include the Securities and Exchange Commission, the National Labor Relations Act, the Federal Deposit Insurance Corporation, Social Security, and the Fair Labor Standards Act.

The New Deal was the inspiration for President Lyndon B. Johnson's Great Society in the 1960s: Johnson (on right) headed the Texas NYA and was elected to Congress in 1938

New Deal

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Series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939.

Series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939.

The New Deal was the inspiration for President Lyndon B. Johnson's Great Society in the 1960s: Johnson (on right) headed the Texas NYA and was elected to Congress in 1938
US annual real GDP from 1910 to 1960, with the years of the Great Depression (1929–1939) highlighted
Top left: The TVA Act signed into law in 1933
Top right: President Franklin D. Roosevelt led the New Dealers;
Bottom: A public mural from the arts program
Unemployment rate in the United States from 1910–1960, with the years of the Great Depression (1929–1939) highlighted (accurate data begins in 1939)
1935 cartoon by Vaughn Shoemaker in which he parodied the New Deal as a card game with alphabetical agencies
Crowd at New York's American Union Bank during a bank run early in the Great Depression
Roosevelt's ebullient public personality, conveyed through his declaration that "the only thing we have to fear is fear itself" and his "fireside chats" on the radio did a great deal to help restore the nation's confidence
Public Works Administration Project Bonneville Dam
Pumping water by hand from the sole water supply in this section of Wilder, Tennessee (Tennessee Valley Authority, 1942)
National Recovery Administration Blue Eagle
Manufacturing employment in the U.S. from 1920 to 1940
A poster publicizing Social Security benefits
Works Progress Administration (WPA) poster promoting the LaGuardia Airport project (1937)
Female factory workers in 1942, Long Beach, California
National debt as gross national product climbs from 20% to 40% under President Herbert Hoover; levels off under Roosevelt; and soars during World War II from Historical States US (1976)
Federal Emergency Relief Administration (FERA) camp for unemployed women in Maine, 1934
Anti-relief protest sign near Davenport, Iowa by Arthur Rothstein, 1940
WPA employed 2 to 3 million unemployed at unskilled labor
U.S. GDP annual pattern and long-term trend (1920–1940) in billions of constant dollars
Francis Perkins looks on as Roosevelt signs the National Labor Relations Act
The federal government commissioned a series of public murals from the artists it employed: William Gropper's Construction of a Dam (1939) is characteristic of much of the art of the 1930s, with workers seen in heroic poses, laboring in unison to complete a great public project
"Created Equal": Act I, Scene 3 of Spirit of 1776, Boston (Federal Theatre Project, 1935)
The WPA hired unemployed teachers to provide free adult education programs
Surplus Commodities Program, 1936

The largest programs still in existence today are the Social Security System and the Securities and Exchange Commission (SEC).

New York Stock Exchange

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American stock exchange in the Financial District of Lower Manhattan in New York City.

American stock exchange in the Financial District of Lower Manhattan in New York City.

The Stock Exchange at 10–12 Broad Street, 1882
The floor of the New York Stock Exchange in 1908
NYSE's stock exchange traders floor before the introduction of electronic readouts and computer screens
The NYSE Building at Christmas time (December 2008)
The NYSE trading floor in 2009
The trading floor of the New York Stock Exchange in March 2022
U.S. Secretary of Commerce Donald L. Evans rings the opening bell at the NYSE on April 23, 2003. Former chairman Richard Grasso is also in this picture.
NASA astronauts Scott Altman and Mike Massimino ring the 'closing bell'

On October 1, 1934, the exchange was registered as a national securities exchange with the U.S. Securities and Exchange Commission, with a president and a thirty-three-member board.

Sen. Paul Sarbanes (D–MD) (left) and Rep. Michael G. Oxley (R–OH-4) (right), the co-sponsors of the Sarbanes–Oxley Act

Sarbanes–Oxley Act

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United States federal law that mandates certain practices in financial record keeping and reporting for corporations.

United States federal law that mandates certain practices in financial record keeping and reporting for corporations.

Sen. Paul Sarbanes (D–MD) (left) and Rep. Michael G. Oxley (R–OH-4) (right), the co-sponsors of the Sarbanes–Oxley Act
Before the signing ceremony of the Sarbanes–Oxley Act, President George W. Bush met with Senator Paul Sarbanes, Secretary of Labor Elaine Chao and other dignitaries in the Blue Room at the White House on July 30, 2002

The sections of the bill cover responsibilities of a public corporation's board of directors, add criminal penalties for certain misconduct, and require the Securities and Exchange Commission to create regulations to define how public corporations are to comply with the law.