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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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Related Museum Resources

Papers

January 28, 1965

Letter from Edmund H. Worthy, SEC Division of Corporation Finance to Colonal B.F. Chadwick on Chicago Rock Island and Pacific Railroad Co.

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

February 5, 1965

Memo from Otto Eckstein to President Johnson: Is the Stock Market Too High?

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

February 25, 1965

Letter from Jack Valenti to Gaston Shumate on remarks made by Philip Loomis, Jr.

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

May 4, 1965

Memo from Bill Moyers to Marvin Watson on upcoming New York Stock Exchange visit with President Johnson

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

June 15, 1965

Memo from Gardner Ackley to President Johnson on the stock market

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

June 25, 1965

Letter from John O'Brien, Investor Diversified Services, Inc. to President Johnson asking him to address "Mr. Average Investor"

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

June 30, 1965

31st Annual Report of the Securities and Exchange Commission

[image] (pdf) (Government Records)

August 12, 1965

Memo from Gardner Ackley to President Johnson on the Dow-Jones Index

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

June 21, 1966

Letter from G. Keith Funston, New York Stock Exchange to SEC Chairman Manuel Cohen

[document] (pdf) (Courtesy of Eugene Rotberg)

June 30, 1966

32nd Annual Report of the Securities and Exchange Commission

[image] (pdf) (Government Records)

June 30, 1966

Letter from Irving M. Pollack, SEC Division of Trading and Markets, to John Birmingham, New York Stock Exchange

[document] (pdf) (Courtesy of Eugene Rotberg)

June 30, 1966

Memo from Gardner Ackley to President Johnson on the stock market decline

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

August 8, 1966

Letter from John Birmingham, New York Stock Exchange, to Irving M. Pollack, SEC Division of Trading and Markets

[document] (pdf) (Courtesy of Eugene Rotberg)

August 22, 1966

Letter of Protest from C.H. Goppert to President Johnson on government spending

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

September 20, 1966

Letter from SEC Chairman Manuel Cohen to G. Keith Funston, New York Stock Exchange

[document] (pdf) (Courtesy of Eugene Rotberg)

January 4, 1967

Letter from Norman Poser, SEC Assistant Director, to Donald L. Calvin, New York Stock Exchange

[document] (pdf) (Courtesy of Eugene Rotberg)

January 18, 1967

Letter from Robert M. Bishop, New York Stock Exchange, to Norman Poser, SEC

[document] (pdf) (Courtesy of Eugene Rotberg)

January 20, 1967

Letter from Robert W. Haack, National Association of Securities Dealers, to Irving M. Pollack, SEC Division of Trading and Markets

[document] (pdf) (Courtesy of Eugene Rotberg)

February 11, 1967

Memo from W.M. Blackburn. Jr. with list of Wall Street equity representatives invited to the White House on February 10th

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

February 16, 1967

"Business, Government and Regulation" - Address by SEC Chairman Manuel F. Cohen before the National Industrial Conference Board

[image] (pdf) (Courtesy of Stephen A. Zeff)

February 17, 1967

Letter from William Donaldson, Donaldson Lufkin & Jenrette, Inc. to Charles Ravenel, Office of the Secretary of the Treasury following February 10th White House meeting

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

February 24, 1967

Letter from Irving M. Pollack, SEC Division of Trading and Markets to Robert W. Haack, National Association of Securities Dealers

[document] (pdf) (Courtesy of Eugene Rotberg)

February 27, 1967

Letter from Edward C. Johnson 2nd, Fidelity to Arthur Okun, Council of Economic Advisors following February 10th White House meeting

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

February 27, 1967

Letter from Peter Vermilye, State Street Investment Corporation to Arthur Okun, Council of Economic Advisors following February 10th White House meeting

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

June 16, 1967

Letter from G. Keith Funston, New York Stock Exchange, to Irving M. Pollack, SEC Division of Trading and Markets

[document] (pdf) (Courtesy of Eugene Rotberg)

July 2, 1967

Letter from G. Keith Funston, New York Stock Exchange, to SEC Chairman Manuel Cohen

[document] (pdf) (Courtesy of Eugene Rotberg)

July 7, 1967

Letter from SEC Chairman Manuel Cohen to American Stock Exchange, Boston Stock Exchange, Cincinnati Stock Exchange, Detroit Stock Exchange, Midwest Stock Exchange, National Stock Exchange, New York Stock Exchange and Pacific Coast Stock Exchange

[document] (pdf) (Courtesy of Eugene Rotberg)

July 21, 1967

Letter from G. Keith Funston, New York Stock Exchange, to SEC Chairman Manuel Cohen

[document] (pdf) (Courtesy of Eugene Rotberg)

August 3, 1967

Letter from SEC Chairman Manuel F. Cohen to Leonard Sheriff

[transcript] (pdf) (Government Records)

August 28, 1967

Letter with Draft of Interpretation and Policy with Respect to Markups and Markdowns from Lloyd Derrickson, National Association of Securities Dealers, to Martin Moskowitz, SEC

[document] (pdf) (Courtesy of Eugene Rotberg)

September 22, 1967

Letter from SEC Chairman Manuel Cohen to Robert W. Haack, New York Stock Exchange

[document] (pdf) (Courtesy of Eugene Rotberg)

October 3, 1967

Letter from Robert W. Haack, New York Stock Exchange, to SEC Chairman Manuel Cohen

[document] (pdf) (Courtesy of Eugene Rotberg)

October 19, 1967

Letter from Henry Gemmill, The Wall Street Journal, to Orval Dubois, SEC

[document] (pdf) (Courtesy of Eugene Rotberg)

October 27, 1967

Memo from Arthur Okun to President Johnson reporting on Capitol Hill dinner on the tax issue

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

November 29, 1967

Memorandum from the SEC Office of the General Counsel to the Commission on request from The Wall Street Journal

[document] (pdf) (Courtesy of Eugene Rotberg)

June 6, 1968

Memo from Arthur Okun to President Johnson on possible Federal Reserve action on margin requirements

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

June 26, 1968

Notes from Arthur Okun for President Johnson on upcoming meeting with equity managers

[transcript] (pdf) (Courtesy of the Lyndon B. Johnson Library and Museum)

Photos

September 1967

SEC Commission

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

Oral Histories

30 April 2007

Robert Birnbaum

With Dr. Kenneth Durr

• audio (mp3)
• edited transcript (pdf)

08 June 2007

Donald Calvin

With Dr. Kenneth Durr

• audio (mp3)
• edited transcript (pdf)

14 January 2003

Alan Levenson

With Richard Rowe

• audio (mp3)
• edited transcript (pdf)

Galleries

• Fair To All People - The SEC Takes Command: Texas Gulf Sulphur