Pecora Commission
| This article is a stub. You can help by expanding it. |
The Pecora Commission, launched in 1932, investigated the causes of the 1929 Wall Street crash. It was named after its chief counsel Ferdinand Pecora, a former New York prosecutor[1]. The Pecora Commission reported on the causes of the financial crisis that caused the Great Depression, and led to the passage of several banking reforms, including the Glass-Steagall Act.
One of the Pecora Commission conclusions was that common ownership of commercial and investment banks created problems, including[2]:
1) jeopardizing depositors by investing their funds in the stock market;
2) loss of the public’s confidence in the banks, which led to panic withdrawals;
3) the making of unsound loans; and
4) an inability to provide honest investment advice to depositors because banks were conflicted by their underwriting relationship with companies.
Contents
Resources
Related SourceWatch articles
References
- ↑ Brady Dennis, In Original Reformer, a Model, Washington Post, September 16, 2009, retrieved October 10, 2009.
- ↑ Sold Out - How Wall Street and Washington Betrayed America , Consumer Education Foundation, March, 2009. Retrieved october 10, 2009.
External links
External articles
- Ron Chernow, Where Is Our Ferdinand Pecora?, NY Times Op-Ed, January 5, 2009.
- Brady Dennis, In Original Reformer, a Model, Washington Post, September 16, 2009
