6/06/1934: 06/06/1934: FDR signs the Securities Exchange Act, creating th…
FDR signs the Securities Exchange Act, creating the Securities Exchange Commission (SEC), which will license stock exchanges and determine the legality of certain speculative market practices. The following day, Congress will pass the Corporate Bankruptcy Act, allowing corporations facing bankruptcy to reorganize if two-thirds of its creditors agree. Efforts at both prevention and prescription, the bills address some of the factors which led to the severity of the Great Depression.