Drafting Summary and Analysis

Bankers' meetings were a "must" for conducting business. They were long, absurd, and often out of control, seeming to reflect the characteristics of a "new generation of bankers." Before the Depression, investment banking was a simplistic activity. Small, independent bankers sold securities to customers, packaging them in attractive "wrappings." If the investor made money, he came back for more; if he failed to realize a profit or, worse, lost money, he did not return to that banker for future business. Prior to the Depression, bankers sold bad securities to investors with abandon. Lack of regulation allowed this to continue until the bad securities could not be sold anymore. The 1929 crash was the result. One of the regulations put in place to prevent the recurrence of this was the establishment of the SEC, which was to approve the value and subsequent sale...