A Critical Look at SIPC
Throughout most of its U.S. history, operation of the securities market has been directed by private associations with very little government regulation or interference.
This situation changed after the Crash of 1929, when an estimated $50 billion stock market loss triggered the Great Depression and ended the government's hands-off attitude.
The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit clevelandfed.org for updates.