NCJ Number
119384
Date Published
1988
Length
22 pages
Annotation
This chapter examines the events leading to the stock market crash of 1929 and the development of Federal legislation to regulate the stock market.
Abstract
After the 1929 crash, public outrage at the morally lax behavior of some investors and financiers led to strong pressures for Federal control over the stock market. Initial Federal legislation was intended to regulate market conduct. However, since compromise is necessary to pass legislation, the sharpness of the moral outrage was blunted, and the government's regulatory authority was clouded. The legislation that was passed resulted in changes to the market that were not anticipated. The role of political contingencies on the proposed legislation is discussed in detail, as are the effects of the economic depression of the 1930s, pressures from the electorate to control the stock market, and the Federal government's role as intervenor. 60 footnotes.