Part 10: Who protects your money? Agencies and regulators

In short: Government agencies help keep money safe: the FDIC and NCUA protect money in banks and credit unions, examiners check banks, and the SEC makes companies tell the truth.^[1][2][3][4]

Facts

• On June 16, 1933, President Franklin Roosevelt signed the law that created the FDIC, the agency that protects money people keep in banks.^[1]3–5
• Another agency, the NCUA, insures money in credit unions and protects the members who own them.^[2]3–5
• Bank examiners check that national banks run in a safe and sound way.^[3]3–5
• Companies that sell shares to the public must tell the truth about their business, the SEC says.^[4]3–5
• If you see a scam, a grown-up can report it to the Federal Trade Commission at ReportFraud.ftc.gov.^[5]3–5

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In short: Congress created the SEC in 1934 to protect investors and keep markets fair, orderly and efficient.^[1][2]

Facts

• Congress created the Securities and Exchange Commission (SEC) with the Securities Exchange Act of 1934.^[1]6–8
• The SEC’s job is to protect investors, keep markets fair, orderly and efficient, and help businesses raise money.^[2]6–8

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In short: The CFTC was created in 1974. Its mission is to promote the integrity of U.S. derivatives markets, such as futures.^[1][2]

Facts

• The Commodity Futures Trading Commission (CFTC) was created in 1974 by the Commodity Futures Trading Commission Act.^[1]Teens
• Futures contracts for farm goods have been traded in the United States for more than 150 years.^[1]Teens
• The CFTC’s mission is to promote the integrity, resilience and vibrancy of U.S. derivatives markets.^[2]Teens
• When the CFTC began, most futures trading was in farm products.^[1]Grown-ups

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In short: Several agencies watch over banks: the OCC, created in 1863, for national banks; the Federal Reserve, created in 1913; and the NCUA, created in 1970, for credit unions.^[1][2][3]

Facts

• On February 25, 1863, President Lincoln signed the National Currency Act into law. It created the Office of the Comptroller of the Currency (OCC).^[1]Teens
• The OCC charters, regulates and supervises all national banks and federal savings associations.^[1]Teens
• The OCC is an independent bureau of the U.S. Treasury Department.^[1]Teens
• Congress created the National Credit Union Administration (NCUA) in 1970. It is an independent federal agency.^[3]Teens
• The NCUA charters and regulates federal credit unions and provides up to $250,000 of federal share insurance.^[3]Grown-ups
• The Federal Reserve Act became law on December 23, 1913 (12 U.S.C. 226).^[2]Grown-ups

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In short: The CFPB enforces consumer financial law, the FTC protects people from unfair and deceptive business practices, and FinCEN fights money laundering.^[1][2][3]

Facts

• The Federal Trade Commission (FTC) works to protect Americans from unfair and deceptive business practices.^[2]6–8
• The FTC was created in 1914.^[2]6–8

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In short: FINRA is a private not-for-profit organization, overseen by the SEC, that writes and enforces rules for brokers. State securities regulators work together through NASAA.^[1][2]

Facts

• State securities regulators work together in NASAA, an association of state securities administrators founded in Kansas in 1919.^[2]Teens
• FINRA was formed on July 30, 2007, by combining NASD with NYSE Member Regulation.^[3]Grown-ups
• FINRA is not a government agency. It is the largest non-governmental regulator for securities brokers and dealers.^[3]Grown-ups
• FINRA is a private not-for-profit membership organization that works under the oversight of the SEC.^[1]Grown-ups
• FINRA writes and enforces rules for its member firms and the people who work for them.^[1]Grown-ups
• FINRA says its mission is to protect investors and safeguard the integrity of the capital markets.^[1]Grown-ups
• NASAA calls itself the oldest international investor protection organization.^[2]Grown-ups

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In short: Regulators from many countries work together through groups such as IOSCO (1983), the Basel Committee (1974) and the Financial Stability Board (2009).^[1][2][3]

Facts

• IOSCO, created in 1983, brings together the world’s securities and derivatives regulators.^[1]Grown-ups
• IOSCO members regulate more than 99 percent of the world’s securities and derivatives markets, in more than 130 jurisdictions.^[1]Grown-ups
• The Basel Committee on Banking Supervision was set up by the central bank governors of the Group of Ten countries at the end of 1974.^[2]Grown-ups
• Its 1988 Accord asked banks to hold capital of at least 8 percent of their risk-weighted assets. Later rules are known as Basel II and Basel III.^[2]Grown-ups
• The Financial Stability Board was set up in April 2009 to replace the Financial Stability Forum.^[3]Grown-ups
• The Financial Stability Forum had been founded in 1999 by the finance ministers and central bank governors of the G7.^[3]Grown-ups

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In short: The timeline below shows key money laws and events, from the stock market crash of 1929 to the Dodd-Frank Act of 2010.^[1][2]

Facts

• On Black Monday, October 28, 1929, the Dow Jones Industrial Average fell nearly 13 percent. The next day, Black Tuesday, it fell nearly 12 percent more.^[1]6–8

Timeline

1. 1792Buttonwood Agreement: the start of the New York Stock ExchangeSee the fact →
2. 1863National Currency Act creates the OCCSee the fact →
3. 1913Federal Reserve ActSee the fact →
4. 1914The FTC is createdSee the fact →
5. 1929Stock market crashSee the fact →
6. 1933Banking Act of 1933 creates the FDICSee the fact →
7. 1933Securities Act of 1933See the fact →
8. 1934Securities Exchange Act creates the SECSee the fact →
9. 1970The NCUA is createdSee the fact →
10. 1974The CFTC is createdSee the fact →
11. 1974The Basel Committee is set upSee the fact →
12. 1983IOSCO is createdSee the fact →
13. 2002Sarbanes-Oxley ActSee the fact →
14. 2007FINRA is formedSee the fact →
15. 2007The Great Recession begins (it ends in 2009)See the fact →
16. 2009The Financial Stability Board is set upSee the fact →
17. 2010Dodd-Frank ActSee the fact →
18. 2017CFTC says Bitcoin is a commoditySee the fact →
19. 2023FedNow instant payments startSee the fact →
20. 2025GENIUS Act sets stablecoin rulesSee the fact →

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