Bank of America and the Sec

In: Business and Management

Submitted By ronantoli
Words 1522
Pages 7
Bank of America
Wardell Gordon
Strayer University
Professor Lateefah Muhammad
June 15, 2014

Bank of America and the SEC
The banking and securities establishment has been around virtually since the founding of this great nation. Right after the United States declared their independence from England they reformed and established a new way to bank and circulate money. From the start, the banking and securities industry have been working hand and hand. According to Sylla,” the sector that benefited most from early U.S. securities markets was banking. Banks in the United States, unlike most banks in other countries at the time, were corporations that raised their banking capital by issuing equity securities…active trading markets in the1790s.”(1998).This system was a ticking bomb for corruption from the beginning.
There was little regulation the governed the securities industry. This sector was lawless like the Wild West. It left the door open for greedy bankers and brokers to steal and steal until almost everything was almost gone. These bankers and brokers was selling snake oil to vulnerable Americans. The SEC website states,” During the 1920s, approximately 20 million large and small shareholders took advantage of post-war prosperity and set out to make their fortunes in the stock market. It is estimated that of the $50 billion in new securities offered during this period, half became worthless.”(n.d.). This prelude to the catastrophic event called the Great Depression was almost indiscernible to the government or the private sector.
In 1933, the SEC was created to police Wall Street, securities, and the banking sector. According to Bagley,” The SEC has broad power to investigate apparent violations of section 10(b), Rule 10b–5, and section 17(a); to order the violator to stop its wrongful conduct; and to recommend criminal prosecution for willful…...

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