www.sechistorical.org

Virtual Museum and Archive of the History of Financial Regulation

SEC HISTORICAL SOCIETY

Search

Advanced Search | Search Tips

What's New

In the Museum

Home > Galleries > In the Midst of Revolution...

Galleries

In the Midst of Revolution: The SEC, 1973-1981

Foundation for Renewal

Post-Watergate SEC

- September 4, 1973 Swearing-in ceremony for SEC Chairman Ray Garrett, Jr.
Philip A. Loomis, Jr., Ray Garrett, Jr., Virginia Garrett, Hugh Owens and John R. Evans

President Nixon's entanglement in the ethical crisis of Watergate, and the disclosure that the SEC Chairman G. Bradford Cook had perjured himself before Congress when testifying about the SEC's investigation into the illegal payment scandal involving financier Robert Vesco, created a crisis at the agency.(3) After Cook's resignation on May 17, 1973, Nixon calculated his response to criticism that he had politicized the agency by ending his previous practice of appointing political friends to the SEC.

Anxious to demonstrate that his administration could still attract top talent, Nixon offered the SEC Chairmanship to Ray Garrett, Jr., a conservative lawyer from Chicago who had remained aloof from politics.(4) Garrett had served in the SEC from 1954 to 1958, primarily in the Division of Corporate Regulation. In addition, he had served on several national advisory boards, including as a consultant to Professor Louis Loss's American Law Institute Federal Securities Codification project.(5)

Garrett declined the offer, recommending that Nixon appoint A. A. Sommer, Jr., a Cleveland attorney and securities bar expert. Nixon refused to appoint Sommer, who was a Democrat. When the term of SEC Commissioner A. Sydney Herlong ended in June 1973, a deal was reached whereby Garrett would become Chairman and Sommer would replace Herlong on the Commission.

Six months later, Nixon named Irving Pollack as his final Commission appointment. Pollack was a career SEC staff attorney who had served as both the Director of the Divisions of Enforcement and of Market Regulation, and who had played key roles in several ongoing issues, including that of fixed commission rates.

Garrett, Sommer and Pollack joined SEC Commissioners Philip Loomis and John R. Evans to form a SEC Commission that, even as Nixon's Presidency collapsed, provided competent and expert leadership that laid the foundation for successful policy implementation at the SEC.

<<Previous | Next >>

Footnotes:

(3) The Bright Image: The SEC, 1961-1973, Ethical Crisis at the SEC – Chairman Cook

(4) Felix Belair, Jr., "S.E.C. at 40 Pushes Reform," The New York Times, June 30, 1974, 127

(5) Joel Seligman, The Transformation of Wall Street (Aspen Publishers: New York, 2003), 448-449

Related Museum Resources

Papers

May 26, 1973: Memo from Herbert Stein to President Nixon on price freeze
[transcript] (pdf) (Courtesy of the Nixon Presidential Library & Museum)
May 29, 1973: Memo from Alexander Haig to President Nixon on upcoming economic meeting
[transcript] (pdf) (Courtesy of the Nixon Presidential Library & Museum)
June 1, 1973: Letter and Memorandum from SEC Commissioner Hugh F. Owens to U.S. Representative Harley O. Staggers regarding the appointment of Lawrence E. Nerheim as SEC General Counsel
[transcript] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
June 27, 1973: "The Need for Cooperation between the Banking and Securities Industries," Address by SEC Commissioner John R. Evans to Utah Bankers Association
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
August 7, 1973: Draft Speech by Ray Garrett, Jr. to American Bar Association
[document] (pdf) (Courtesy of Harvey L. Pitt)
September 25, 1973: "The Internationalization of Our Securities Markets," Speech by Ray Garrett, Jr. to Boston Stock Exchange
[document] (pdf) (Courtesy of Harvey L. Pitt)
October 1, 1973: "Bank Participation in Securities Activities," Address by SEC Commissioner John R. Evans to Practising Law Institute.
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
October 3, 1973: "New Challenges for the Securities Industry," Speech by Ray Garrett, Jr. to The Investment Association
[document] (pdf) (Courtesy of Harvey L. Pitt)
October 11, 1973: Statement by Ray Garrett, Jr. before the Subcommittee on HUD-Space-Science - Veterans, Senate Committee on Appropriations
[document] (pdf) (Courtesy of Harvey L. Pitt)
November 8, 1973: Comments by Ray Garrett, Jr. before the Subcommittee on Securities of the Senate Committee on Banking, Housing and Urban Affairs on S.2519, 93rd Congress, 1st Session
[document] (pdf) (Courtesy of Harvey L. Pitt)
November 12, 1973: Statement by Ray Garrett, Jr. before the Subcommittee on Securities of the Senate Committee on Banking, Housing and Urban Affairs on S.2519, 93rd Congress, 1st Session
[document] (pdf) (Courtesy of Harvey L. Pitt)
November 29, 1973: "The Securities Industry: A Look Ahead," Speech by Ray Garrett, Jr. to Securities Industry Association Annual Convention
[document] (pdf) (Courtesy of Harvey L. Pitt)
December 7, 1973: Memo from SEC Commissioner John R. Evans on Telephone Call from Bernie Moss
[transcript] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
1974: Everything You Always Wanted to Know About SEC Commissioners (But Were Afraid to Ask)
[image] (pdf) (Government Records)
1974: Upward Mobility, SEC
[image] (pdf) (Government Records)
January 16, 1974: "Continuity and New Challenges," Speech by SEC Chairman Ray Garrett, Jr. to the Securities Regulation Institute
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
January 16, 1974: "It Was the Best of Times," Address by SEC Commissioner John R. Evans to Financial Management Division, Securities Industry Association
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
February 6, 1974: "The SEC's Concern with Bank Trust Activities," Speech by SEC Chairman Ray Garrett, Jr. to the 55th National Trust Conference
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
February 7, 1974: "Foreign Investment in U.S. and U.S. Securities Laws," Speech by SEC Chairman Ray Garrett, Jr. to the Chamber of Commerce
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
February 18, 1974: "SEC Approach to Municipal Securities Regulation," Address by SEC Commissioner John R. Evans to 2nd Annual Bank Investments Conference, American Bankers Association
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
February 20, 1974: Notes for SEC Chairman Ray Garrett, Jr. for Exchequer Club
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
March 1, 1974: "The State of the SEC," Speech by SEC Chairman Ray Garrett, Jr. to the Practising Law Institute Conference
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
March 1974: Taking Stock, U.S. Securities and Exchange Commission
[document] (pdf) (Courtesy of Richard Rowe)
March 7, 1974: Statement by SEC Chairman Ray Garrett, Jr. before the Subcommittee on Foreign Commerce and Tourism of the Senate Committee on Commerce on S.2840, 93rd Congress, 1st Session
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
March 13, 1974: "Applying Securities Laws to Banking Activities," Comments by SEC Commissioner John R. Evans for the Mutual Funds and Investment Management Conference
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
March 14, 1974: "A Look Ahead," Speech by SEC Chairman Ray Garrett, Jr. to the Mutual Funds and Investment Management Conference
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
March 19, 1974: Testimony of SEC Chairman Ray Garrett, Jr. before the Subcommittee on HUD-Space-Science-Veterans of the House Committee on Appropriations, on the SEC's Fiscal 1975 Budget Estimate
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
March 22, 1974: "Capital Markets Today and Tomorrow," Speech by SEC Chairman Ray Garrett, Jr. to the Executives Club of Chicago
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
March 27, 1974: Statement by SEC Chairman Ray Garrett, Jr. before the Subcommittee on Securities of the Senate Committee on Banking, Housing and Urban Affairs, on S.3126, 93rd Congress, 2nd Session
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
March 29, 1974: "Forecasting: A Look at the Future," Address by SEC Commissioner A.A. Sommer, Jr. to the Corporate Financial Forecast and Disclosure Conference, Drexel University
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
April 23, 1974: "Effective Regulation Requires Cooperation and Coordination," Address by SEC Commissioner John R. Evans to North American Securities Administrators Association
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
April 24, 1974: U.S. Securities and Exchange Commission News Digest
[document] (pdf) (Courtesy of Richard Rowe)
April 25, 1974: "A Look at the SEC's Administrative Practices," Speech by SEC Chairman Ray Garrett, Jr. to the Southwestern Legal Foundation
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
April 30, 1974: "Improved Exemptions and Improved Disclosure," Speech by SEC Chairman Ray Garrett, Jr. to the Colorado Bar Assocation
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
May 2, 1974: "Regulation of Bank Securities Activities," Address by SEC Commissioner John R. Evans to the Ninth Annual Banking Law Institute
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
May 2, 1974: "The Individual Investor and the Stock Markets," Speech by SEC Chairman Ray Garrett, Jr. to Women Investment Brokers
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
May 3, 1974: "Euro-Capital Markets after the Removal of American Restrictions," Address by SEC Commissioner A. A. Sommer, Jr. to the 1974 Annual General Meeting of The Association of International Bond Dealers
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
May 6, 1974: Testimony of Commissioner John R. Evans, Securities and Exchange Commission before the Subcommittee on Securities of the Senate Committee on Banking, Housing and Urban Affairs on S.2474 and S.1933
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
May 8, 1974: "Our Changing Capital Matters," Address by SEC Chairman Ray Garrett, Jr. to the Commonwealth Club of California
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
May 13, 1974: Testimony of the Honorable Ray Garrett, Jr., Chairman, Securities and Exchange Commission, before the Subcommittee on HUD-Space-Science-Veterans, Committee on Appropriations, United States Senate, on the Securities and Exchange Commission's Fiscal 1975 Bud
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
May 16, 1974: Remarks of SEC Chairman Ray Garrett, Jr. at Retirement Dinner for Donald J. Stocking
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
May 16, 1974: Testimony of the Honorable Ray Garrett, Jr., Chairman, Securities and Exchange Commission, before the Senate Committee on Commerce, on S.3356, 93rd Congress, 2nd Session
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
June 4, 1974: "A Fence on the Cliff - Or An Ambulance in the Valley," Address by SEC Commissioner John R. Evans to 68th Annual Municipal Finance Officers Association Conference
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
June 30, 1974: 40th Annual Report of the Securities and Exchange Commission
[image] (pdf) (Government Records)
July 2, 1974: Address by SEC Chairman Ray Garrett, Jr. before the San Diego Mortgage Bankers Association
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
August 12, 1974: Memo from Don Webster to William Baroody with proposed language from SEC for President Ford speech
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
September 11, 1974: Letter from Theodore Barreaux, SEC to William J. Baroody on Newsweek cover article
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
September 20, 1974: Letter from David L. Ratner, Stanford Law School, to SEC Commissioner John R. Evans on presentation to Professor Ratner's class on current problems in the securities markets
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
September 27, 1974: Letter from Paul A. Miltich, White House, to James Rosenthal, SEC on placing Op-Ed pieces
[transcript] (pdf) (Courtesy of the Gerald R. Ford Library)
October 1974: SEC Telephone Directory
[image] (pdf) (Courtesy of Morton Koeppel)
October 6, 1974: "The Year Ahead: Coping With Our Common Problems" - Address by SEC Chairman Ray Garrett, Jr. to the National Security Traders Association
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
October 9, 1974: Letter from Christopher R. Sheppard to Philip W. Buchen responding to President Ford's economic address
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
October 14, 1974: Memo from Dean Burch on meeting with Ray Garrett, Jr.
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
October 14, 1974: Memo from SEC Chairman Ray Garrett, Jr. to Dean Burch with possible topics for meeting with President Ford
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
October 15, 1974: Testimony of SEC Chairman Ray Garrett, Jr. before the Senate Committee on Government Operations on S.260
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
October 21, 1974: Letter from Theodore Barreaux, SEC to Wayne Valis requesting bill signing ceremony
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
October 22, 1974: Letter from Paul A. Miltich, White House, to Philip Geyelin, Washington Post, suggesting inclusion of speech by SEC Commissioner A.A. Sommer, Jr. in Op-Ed page
[transcript] (pdf) (Courtesy of the Gerald R. Ford Library)
October 24, 1974: Remarks of SEC Chairman Ray Garrett, Jr. at the SEC 40th Anniversary Dinner
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
October 24, 1974: SEC 40th Anniversary Dinner Program
[image] (pdf) (Courtesy of Morton Koeppel)
October 26, 1974: "Life Begins at Forty" - Address by SEC Chairman Ray Garrett, Jr. at New York University
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
February 19, 1975: Testimony of SEC Chairman Ray Garrett, Jr. before the Subcommittee on Securities of the U.S. Senate Committee on Banking, Housing and Urban Affairs on S.249
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
March 5, 1975: Statement by SEC Chairman Ray Garrett, Jr. before the Subcommittee on Securities of the U.S. Senate Committee on Banking, Housing and Urban Affairs on S.425
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
March 11, 1975: Letter from SEC Chairman Ray Garrett, Jr. to Hugh F. Owens, Securities Investor Protection Corporation, on amendments to Securities Investor Protection Act of 1970
[transcript] (pdf) (Courtesy of the Gerald R. Ford Library)
March 17, 1975: Letter from SEC Chairman Ray Garrett, Jr. to Kenneth R. Cole, Jr. on the Civil Rights Commission report
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
April 3-4, 1975: "Where Are We Now - U.S. Law" - Outline of Talk by SEC Chairman Ray Garrett, Jr. to the Second International Securities Law Conference
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
April 18, 1975: Testimony of SEC Commissioner John R. Evans before the Subcommittee on Consumer Protection and Finance of the House of Representatives Committee on Interstate and Foreign Commerce Concerning H.R. 4570
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
April 28, 1975: Memo from Theodore C. Barreaux, SEC to Philip Buchen on Presidential bill signing ceremony for the Securities Reform Act of 1975
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
April 29, 1975: Memo from Philip Buchen to Warren Rustand on proposed May 3 bill signing ceremony
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
May 28, 1975: Memo for the President from James M. Frey, Office of Management and Budget, on Securities Act Amendments of 1975
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
May 30, 1975: Memo from Jim Cannon to President Ford on Securities Act Amendments of 1975
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
June 3, 1975: Memo from William Baroody to Philip Buchen on conversation with SEC Chairman Garrett
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
June 4, 1975: Public Law 94-29, 94th Congress - Securities Acts Amendments of 1975
[image] (pdf) (Courtesy of the Library of Congress)
June 11, 1975: Letter from SEC Commissioner John Evans to Jack Bookey, SEC Seattle Regional Administrator
[document] (pdf) (Courtesy of the estate of John Evans)
June 17, 1975: Testimony of Commisssioner Philip A. Loomis, Jr., SEC, before the Subcommittee on International Economic Policy of the House Committee on International Relations
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
June 27, 1975: Invitation letter from President Ford to SEC Chairman Ray Garrett, Jr. to attend July 9th meeting of independent regulatory agencies
[transcript] (pdf) (Courtesy of the Gerald R. Ford Library)
June 27, 1975: Invitation letter from Roderick M. Hills, White House to Laurence E. Nerheim, SEC to attend July 3rd meeting of General Counsels of independent regulatory agencies
[transcript] (pdf) (Courtesy of the Gerald R. Ford Library)
June 30, 1975: 41st Annual Report of the Securities and Exchange Commission
[image] (pdf) (Government Records)
July 21, 1975: Memo from Harvey L. Pitt, SEC to Roderick M. Hills, White House on application of Federal securities laws to the Arab boycott
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
July 22, 1975: Statement of the Honorable Ray Garrett, Jr., Chairman, Securities and Exchange Commission, before the Subcommittee on International Finance of the Senate Committee on Banking, Housing and Urban Affairs on S.425 - Foreign Investment Act of 1975
[transcript] (pdf) (Courtesy of Harvey L. Pitt)
August 5, 1975: Letter from SEC Chairman Ray Garrett, Jr. to President Ford on Securities Investor Protection Corporation
[transcript] (pdf) (Courtesy of the Gerald R. Ford Library)
August 19, 1975: Letter from Charles F. Rogers, Jr. to Theodore Barreaux seeking employment at the SEC
[image] (pdf) (Roderick Hills Papers, Courtesy of the Gerald R. Ford Library)
August 20, 1975: Letter from Theodore Barreaux to Richard L. Still, U.S. House of Representatives on employment request from Charles F. Rogers, Jr.
[image] (pdf) (Roderick Hills Papers, Courtesy of the Gerald R. Ford Library)
August 22, 1975: Letter from Theodore Barreaux to Charles F. Rogers, Jr.
[image] (pdf) (Roderick Hills Papers, Courtesy of the Gerald R. Ford Library)
September 3, 1975: Letter from SEC Commissioner John Evans to George W. Mitchell, Vice Chairman, Board of Governors of the Federal Reserve System
[document] (pdf) (Courtesy of the estate of John Evans)
September 5, 1975: Letter from U.S. Representative John E. Moss to SEC Chairman Ray Garrett, Jr. on the SEC's implementation of the Securities Acts Amendments of 1975
[transcript] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
September 8, 1975: "The Delicate Balance of Regulation and Competition" - Address by SEC Commissioner A.A. Sommer, Jr. to the North American Securities Administrators Association, Inc. 58th Annual Conference
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
September 17, 1975: Resignation letter from SEC Chairman Ray Garrett, Jr. to President Ford
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
September 19, 1975: Letter from A.A. Sommer, Jr. to Wayne Valis
[image] (pdf) (Courtesy of the Gerald R. Ford Library)
September 19, 1975: Letter from President Ford accepting resignation of SEC Chairman Ray Garrett, Jr.
[transcript] (pdf) (Courtesy of the Gerald R. Ford Library)
November 18, 1975: Letter from John E. Petersen, Municipal Finance Officers Association, to SEC Commissioner John R. Evans on suggested guidelines for municipal bond official statements
[image] (pdf) (Courtesy of the estate of John R. Evans; made possible through a gift from Quinton F. Seamons)
March 7, 1980: Program for the SEC Memorial Service for Ray Garrett, Jr.
[image] (pdf) (Courtesy of Nancy Garrett Worcester)

Photos

September 4, 1973: Swearing-in ceremony for SEC Chairman Ray Garrett, Jr.

Philip A. Loomis, Jr., Ray Garrett, Jr., Virginia Garrett, Hugh Owens and John R. Evans
(Photo and identification courtesy of Nancy Garrett Worcester )
1974: SEC 40th Anniversary Celebration
1974: SEC Commission

A.A. Sommer, Jr., Philip A. Loomis, Jr., Ray Garrett, Jr., John R. Evans and Irving M. Pollack
1974: SEC Division of Corporation Finance

(seated) Morton Koeppel; (standing, left to right) Bill Carter, Joe Hock, Becky Fleck, Alan Cohen, Jim McCabe, Paul Belvin, Letty Lynn, Mark Warner, Tom Klee and Laurence Lese
(Photo and identification courtesy of Morton Koeppel )