A History of Securities Law in the Supreme Court

A History of Securities Law and the Supreme Court explores how the Supreme Court has made (and remade) securities law, covering the history of the federal securities laws from their inception during the Great Depression to the present. It divides the history into five periods that parallel and illustrate key trends of the Court's jurisprudence.

Format: Hardback
Length: 376 pages
Publication date: 02 May 2023
Publisher: Oxford University Press Inc

A History of Securities Law and the Supreme Court delves into the profound impact of the Supreme Court on the development and evolution of securities law. Spanning several decades, this comprehensive examination explores the historical trajectory of the federal securities laws, shedding light on the justices' deliberations, decision-making processes, and the shaping of their opinions.

The history of securities law can be categorized into five distinct periods, each serving as a window into the Court's jurisprudence and the broader trends that have influenced its decisions.

The first period, spanning from the Great Depression to the mid-1940s, witnessed a significant shift in the Court's stance towards regulating business. Under the administration of Franklin Delano Roosevelt, who filled eight seats on the Court, the securities laws were enacted and their constitutional legitimacy was established. This marked a turning point, as the Court's long-standing hostility to business regulation gave way to a more favorable approach. The justices appointed by Roosevelt, known for their commitment to social control of finance, ushered in an era of deference to the expertise of the Securities and Exchange Commission (SEC). This era of cooperation between the Court and the SEC lasted through the 1940s and 1950s, as the SEC's expertise in securities regulation was widely recognized and respected.

However, the 1960s brought about a significant era of judicial activism and statutory interpretation by the Warren Court. The Warren Court placed a greater emphasis on purpose and intent in statutory interpretation, which led to a more expansive reading of securities laws. This period saw the Court's recognition of the importance of investor protection and the development of various legal doctrines to safeguard against fraudulent and manipulative practices.

The arrival of Lewis F. Powell, Jr. in 1972 marked a sharp reversal in the Court's securities jurisprudence. Powell's leadership of the Court brought about a counter-revolution in the field, emphasizing textual interpretation over purpose and intent. This shift led to a more restrictive approach to securities regulation, as the Court sought to limit the SEC's authority and oversight. Powell's retirement in 1987 marked the beginning of the final period of this study.

In the absence of ideological consensus or strong leadership, the Court's securities jurisprudence experienced a period of meandering. Decisions became more arbitrary and unpredictable, taking a random walk between expansive and restrictive interpretations. The Court's securities jurisprudence continued to evolve, shaped by a variety of factors, including changes in the economy, technological advancements, and evolving societal norms.

Overall, A History of Securities Law and the Supreme Court provides a comprehensive and insightful exploration of the evolution of securities law and the profound impact of the Supreme Court on its development. By examining the historical periods and the justices' decisions, this book sheds light on the complex interplay between law, politics, and economic interests, and offers valuable insights into the ongoing challenges and opportunities in securities regulation.

Weight: 678g
Dimension: 162 x 243 x 35 (mm)
ISBN-13: 9780197665916