In 2013, we note the 100th year of federal banking law (Federal Reserve Act of 1913) and the 80th year of federal securities law (Securities Act of 1933). Senator Carter Glass of Virginia (D-VA) is widely known as the father of the Federal Reserve System, but it is not so widely know that he could arguably and rightly be called the father of the SEC.
In 1913, as Chair of the House Banking Committee, Rep. Glass worked to pass the Glass-Owen Federal Reserve Act, which created the Federal Reserve System. He was appointed Secretary of the Treasury by President Wilson and later left that post to become a US Senator from Virginia. In 1933, he worked to pass the Glass-Steagall Act, separating commercial from investment banking, essentially separating the banking and securities industries. Interestingly, earlier, Senator Glass has turned down an offer from President Franklin Roosevelt to become Secretary of the Treasury again.
In 1934, the Securities Exchange Act was moving through Congress, the Administration favored retaining the FTC (named as federal securities regulator in the 1933 Act) as regulator. But Senator Carter Glass preferred a new agency solely dedicated to securities regulation......
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