Furthermore, banks lost large sums of money during the crash because they had invested heavily in the markets. When people feared that their banks would not be able to repay the money depositors had in their accounts, a "run" on the banking system caused many bank failures. After the crash, public confidence in the market and the economy fell sharply. In response, Congress held hearings to identify problems and seek solutions; the answer was found in the new SEC. The Commission was created in 1934 to enforce new securities laws that were passed with the Securities Act of 1933 and the Securities Exchange Act of 1934. Both new laws stipulated that "companies publicly offering securities must tell the public the truth about their activities, the securities they sell and the risks involved in investing. Second, “persons who sell and trade securities must treat investors fairly and honestly, putting the interests of investors first. »2 Franklin Delano Roosevelt defeated Herbert Hoover in the 1932 election and began work on his "New Deal." In the New Deal, four key regulatory agencies were created: the National Labor Relations Board, the Civil Aeronautics Authority, the Federal Communications Commission, and the Securities and Exchange Commission. Wall Street was not enamored with the coming regulations, but Congress was convinced that the Street was seen as an easy target for the crash and depression that followed. In response, the SEC was created by Congress on June 6, 1934, to protect the public and individual investors from improper practices in the financial markets. Commenting on the creation of the SEC, Texas Congressman and future Chairman Sam Rayburn admitted3 that "he did not know whether the legislation passed so easily because it was so good or so incomprehensible." »..

Essay / Furthermore, banks lost large sums of money during the crash because they had invested heavily in the markets. When people feared that their banks would not be able to repay the money depositors had in their accounts, a "run" on the banking system caused many bank failures. After the crash, public confidence in the market and the economy fell sharply. In response, Congress held hearings to identify problems and seek solutions; the answer was found in the new SEC. The Commission was created in 1934 to enforce new securities laws that were passed with the Securities Act of 1933 and the Securities Exchange Act of 1934. Both new laws stipulated that "companies publicly offering securities must tell the public the truth about their activities, the securities they sell and the risks involved in investing. Second, “persons who sell and trade securities must treat investors fairly and honestly, putting the interests of investors first. »2 Franklin Delano Roosevelt defeated Herbert Hoover in the 1932 election and began work on his "New Deal." In the New Deal, four key regulatory agencies were created: the National Labor Relations Board, the Civil Aeronautics Authority, the Federal Communications Commission, and the Securities and Exchange Commission. Wall Street was not enamored with the coming regulations, but Congress was convinced that the Street was seen as an easy target for the crash and depression that followed. In response, the SEC was created by Congress on June 6, 1934, to protect the public and individual investors from improper practices in the financial markets. Commenting on the creation of the SEC, Texas Congressman and future Chairman Sam Rayburn admitted3 that "he did not know whether the legislation passed so easily because it was so good or so incomprehensible." »..

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