Pecora Commission

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The Pecora Commission, launched in 1932, investigated the causes of the 1929 Wall Street crash. It was named after its chief counsel Ferdinand Pecora, a former New York prosecutor[1]. The Pecora Commission reported on the causes of the financial crisis that caused the Great Depression, and led to the passage of several banking reforms, including the Glass-Steagall Act.

One of the Pecora Commission conclusions was that common ownership of commercial and investment banks created problems, including[2]:
1) jeopardizing depositors by investing their funds in the stock market;
2) loss of the public’s confidence in the banks, which led to panic withdrawals;
3) the making of unsound loans; and
4) an inability to provide honest investment advice to depositors because banks were conflicted by their underwriting relationship with companies.


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  1. Brady Dennis, In Original Reformer, a Model, Washington Post, September 16, 2009, retrieved October 10, 2009.
  2. Sold Out - How Wall Street and Washington Betrayed America , Consumer Education Foundation, March, 2009. Retrieved october 10, 2009.

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