SEC Historical Society’s Post

This week in 1974, the Senate began hearings on the regulation of the municipal securities market. Critics maintained that the SEC could regulate brokers but not banks, which often issued muni bonds. Senator Harrison Williams found no “justification for treating the two types of organizations differently.” Learn more: https://buff.ly/3UX53UR

This week in 1963, Chairman Cary sent the Special Study of the Securities Markets to Congress. Conducted by an independent team under Milton Cohen, the Special Study revealed flaws in self-regulation, underscored the commission’s fiduciary responsibility, and reinvigorated the SEC. Learn more: https://buff.ly/4cIN4bd

Congratulations to Brandon Becker the recipient of the Past Presidents Award from ASECA - Assn of SEC Alumni.

Congratulations to Jonathan Katz the recipient of the 2023-2024 William O. Douglas Award from ASECA - Assn of SEC Alumni. Jonathan Katz served Secretary of the SEC for twenty years.

This week in 1972, the AICPA issued a staff study directed by former SEC Commissioner Francis Wheat. Prompted by flaws in the part-time Accounting Principles Board, The Wheat Report led to creation of the full-time, independent, Financial Accounting Standards Board (FASB). Learn more: https://buff.ly/4bZK6ig

The Society mourns the loss of former SEC Commissioner and long-serving SEC Historical Society Trustee Roberta S. Karmel. Roberta Karmel was the first woman Commissioner. She passed away on Saturday, March 23 at 86. To listen to her oral history, go to the Virtual Museum of Financial Regulation. https://buff.ly/4a6X90d

This week in 1995, Chairman Levitt announced the creation of the Office of Compliance, Inspections, and Examinations. OCIE made the SEC’s exchange, broker-dealer, investment adviser, and investment company examinations programs more efficient and effective. Learn more: https://buff.ly/3UZ06uM

This week in 2000, the NASDAQ Composite peaked, marking the apex of the “dot-com” bubble. Mergers were canceled, venture capital withdrawn, and share prices plunged. The bursting of the bubble fueled A Steady Drumbeat of Corporate Scandals and passage of the Sarbanes-Oxley Act. Learn more: https://buff.ly/3UUIf8s

This week in 1935, the “capital strike,” an attempt by corporations to thwart the new commission by refusing to make new issues was finally broken after the SEC received an application by meatpacker Swift & Company for a $43 million equities issue. Learn more: https://buff.ly/3IjzWeP

This week in 1973, Congressman John Moss introduced legislation eliminating fixed commission rates on exchanges. Although unsuccessful, this was the first in a series of steps taken by Congress and the Commission that after May 1, 1975, transformed the structure of the equities markets. Learn more: https://buff.ly/3P559WV