Work in progress — cycles are added one at a time. Every quote is machine-verified against an archived source; follow the links to read it.
1932 › Franklin D. Roosevelt (Democratic) › Regulation of securities issuance and exchanges
Require full public disclosure on all offerings of stocks and bonds
pledge_forwardspecific_pledgecandidate_directevidence A Banking & FinanceIndustry, Business & Regulation similar solutions · similar reasoning
Solution
Require that all offerings of foreign and domestic stocks and bonds file with the government, and carry in advertisements, true information about bonuses, commissions, principal invested and the sellers' interests.
Rationale
"Publicity is the enemy of crookedness"; disclosure protects savings "from the dishonesty of crooks and from the lack of honor of some men in high financial places."
Statements (4)
We advocate protection of the investing public by requiring to be filed with the government and carried in advertisements of all offerings of foreign and domestic stocks and bonds true information as to bonuses, commissions, principal invested, and interests of the sellers.
That admirable document, the platform which you have adopted, is clear. I accept it 100 percent.
Blanket endorsement of every plank.
I list an important place for that prize statement of principle in the platform here adopted calling for the letting in of the light of day on issues of securities, foreign and domestic, which are offered for sale to the investing public.
First -- Toward that end and to inspire truth telling, I propose that every effort be made to prevent the issue of manufactured and unnecessary securities of all kinds which are brought out merely for the purpose of enriching those who handle their sale to the public; and I further propose that with respect to legitimate securities the sellers shall tell the uses to which the money is to be put.
Follow-through
kept
The Securities Act of May 27, 1933 required registration and full disclosure for new issues — 'let the seller also beware' — substantially the Columbus proposal and platform plank.
Mechanisms
| Date | Type | Name | Effect | Consistent? | Source |
|---|---|---|---|---|---|
| 1933-03-29 | message | Message on federal supervision of investment securities | This proposal adds to the ancient rule of caveat emptor, the further doctrine "let the seller also beware." It puts the burden of telling the whole truth on the seller. | yes | Message to Congress on Federal Supervision of Investment Securities. |
| 1933-05-27 | statute | Securities Act of 1933 charted on: Index of all common stock prices (Cowles / S&P) | Registration and disclosure for interstate securities offerings. | yes | Statement on Signing the Securities Bill. |
Assessments
The Securities Act required accurate information for investors.
In May 1933, he signed the Securities Act, which required corporations and stockbrokers to release accurate information about stocks to investors.
Other positions on this issue
- No implied government approval of foreign bond sales; officials will not try to move stock prices — Franklin D. Roosevelt, 1932 specific_pledge
- Federal regulation of securities and commodity exchanges, interstate holding companies and interstate utility rates — Franklin D. Roosevelt, 1932 specific_pledge
- No federal 'blue sky' law — securities regulation belongs to the states, and the President should not police booms — Herbert Hoover, 1932 directional_stance
- Keep federal regulation of securities marketing and interstate utilities, vested in independent tribunals under definite standards subject to court review — Alf Landon, 1936 directional_stance
1932-fdr-truth-in-securities · created by claude-fable-5-1 · review: unreviewed