Securities and Exchange Commission Historical Society

The Bright Image: The SEC, 1961-1973

The "Go-Go" Years

Cooperative Regulation

In a March 1964 address to the Investment Bankers Association, Cohen first espoused his theory of SEC-securities industry relations. His address, entitled "Cooperative Regulation," played a theme that was music to President Johnson's and his audience's ears. He reminded them that the Special Study had expressed confidence in the private self-regulatory agencies. "[S]elf- regulation," Cohen announced, "must be permitted to enjoy such autonomy as will enable them to act as responsible partners in a cooperative enterprise and that the Commission's direct and oversight powers are to be used with restraint."(17)

Building on Chairman Cary's efforts, Cohen worked to invigorate the SEC's enforcement efforts, shifting most enforcement efforts to a new Trading and Markets Division, which prosecuted the case of SEC v Texas Gulf Sulphur, one of the most significant insider trading enforcement actions in SEC history. That case resulted in a landmark Circuit Court of Appeals decision upholding the SEC's use of Rule 10b-5 to prosecute insider trading cases.

Cohen was never afraid to wield the SEC's power, but he sought methods of cooperation rather than confrontation. An infusion of competition, Cohen argued, was a principle reason for the success of securities regulation. The fair and efficient use of government regulation to promote economic competition became the theory on which the SEC would implement much of its regulatory agenda for the next two decades.

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Footnotes:

(17) "S.E.C. Plans to Keep Up With Markets," New York Times, July 21, 1964, 45.


Related Museum Resources

Papers

January 28, 1965
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
February 5, 1965
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
February 25, 1965
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
May 4, 1965
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
June 15, 1965
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
June 25, 1965
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
June 30, 1965
image pdf (Government Records)
August 12, 1965
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
June 21, 1966
document pdf (Courtesy of Eugene Rotberg)
June 30, 1966
image pdf (Government Records)
June 30, 1966
document pdf (Courtesy of Eugene Rotberg)
June 30, 1966
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
August 8, 1966
document pdf (Courtesy of Eugene Rotberg)
August 22, 1966
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
September 20, 1966
document pdf (Courtesy of Eugene Rotberg)
January 4, 1967
document pdf (Courtesy of Eugene Rotberg)
January 18, 1967
document pdf (Courtesy of Eugene Rotberg)
January 20, 1967
document pdf (Courtesy of Eugene Rotberg)
February 11, 1967
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
February 16, 1967
image pdf (Courtesy of Stephen A. Zeff)
February 17, 1967
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
February 24, 1967
document pdf (Courtesy of Eugene Rotberg)
February 27, 1967
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
February 27, 1967
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
June 16, 1967
document pdf (Courtesy of Eugene Rotberg)
July 2, 1967
document pdf (Courtesy of Eugene Rotberg)
July 7, 1967
document pdf (Courtesy of Eugene Rotberg)
July 21, 1967
document pdf (Courtesy of Eugene Rotberg)
August 3, 1967
transcript pdf (Government Records)
August 28, 1967
document pdf (Courtesy of Eugene Rotberg)
September 22, 1967
document pdf (Courtesy of Eugene Rotberg)
October 3, 1967
document pdf (Courtesy of Eugene Rotberg)
October 19, 1967
document pdf (Courtesy of Eugene Rotberg)
October 27, 1967
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
November 29, 1967
document pdf (Courtesy of Eugene Rotberg)
June 6, 1968
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)
June 26, 1968
transcript pdf (Courtesy of the Lyndon B. Johnson Library and Museum)

Photos

September 1967

Francis M. Wheat, Hugh F. Owens, Manuel F. Cohen, Hamer Budge and Richard B. Smith

Oral Histories

30 April 2007

Robert Birnbaum

08 June 2007

Donald Calvin

14 January 2003

Alan Levenson

Galleries

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