There is one more tool used by the federal government to influence the economy: the regulation of the financial industry--also known as "Wall Street." Use the tabs below to learn about the ways in which federal regulatory agencies help to safeguard the economy.
The Stock Market
Brokers
Banks
The U.S. Securities and Exchange Commission, an independent agency of the federal government, is responsible for enforcing federal securities laws and regulating the securities industry--the stock and bond markets. Stocks are publicly traded shares in companies, and bonds are debt instruments issued by both companies and governments. A similar agency—the Commodity Futures Trading Commission--regulates the sale of certain goods such as oil, timber, and grain; these are called commodities and are bought and sold on markets similar to those in which stocks and bonds are traded.
The Financial Industry Regulatory Authority, Incorporated (FINRA) works to oversee the securities, or investment, industry. FINRA is an independent corporation that provides regulatory oversight of all securities companies that do business with the public. Examples of these companies include Edward Jones and Meryl Lynch, which provide investment services to individual consumers. FINRA oversees examinations for the issuing of securities licenses to brokers/dealers and can discipline individual brokers for violating regulations or engaging in predatory behavior toward consumers. FINRA also provides continuing education for workers in the securities industry. Since FINRA is an independent and private corporation, it is, in turn, regulated by the SEC.
The banking industry—which includes banks, thrift associations, savings and loans, and credit unions—is also regulated by the federal government. The Office of the Comptroller of the Currency (OCC), a bureau of the Treasury Department, regulates national banks and thrift associations. The OCC works to ensure that the banking system remains competitive and offers consumers new and innovative products and services. It also monitors banks to make sure they provide equal access to financial services for all Americans. In addition to the OCC, two other agencies, the Federal Deposit Insurance Corporation and the National Credit Union Association, help ensure the safety of deposits in the nation’s banks and in its credit unions, respectively.
Do you know which regulatory agency regulates which economic and financial institutions? Use the questions below to review and clarify.
Which organization has ultimate regulatory authority over the stock market?
- Securities and Exchange Commission
- Financial Industry Regulatory Authority
- Office of the Comptroller of Currency
- Federal Deposit Insurance Corporation
The SEC—the Securities and Exchange Commission--has ultimate regulatory authority over the stock market.
The SEC—the Securities and Exchange Commission--has ultimate regulatory authority over the stock market.
The SEC—the Securities and Exchange Commission--has ultimate regulatory authority over the stock market.
The SEC—the Securities and Exchange Commission--has ultimate regulatory authority over the stock market.
Which organization licenses and disciplines securities brokers?
- Securities and Exchange Commission
- Office of the Comptroller of Currency
- Financial Industry Regulatory Authority
- Federal Deposit Insurance Corporation
While the SEC has ultimate regulatory authority over the stock market, FINRA—the Financial Industry Regulatory Authority, Incorporated, disciplines and licenses securities brokers.
While the SEC has ultimate regulatory authority over the stock market, FINRA—the Financial Industry Regulatory Authority, Incorporated, disciplines and licenses securities brokers.
While the SEC has ultimate regulatory authority over the stock market, FINRA—the Financial Industry Regulatory Authority, Incorporated, disciplines and licenses securities brokers.
While the SEC has ultimate regulatory authority over the stock market, FINRA—the Financial Industry Regulatory Authority, Incorporated, disciplines and licenses securities brokers.
Which organization provides insurance on the bank deposits of individuals in the United States?
- Office of the Comptroller of Currency
- Federal Deposit Insurance Corporation
- American Civil Liberty Union
- National Credit Union Association
The FDIC--Federal Deposit Insurance Corporation---currently insures an individual's deposits up to $250,000. The NCUA serves the same function for credit unions.
The FDIC--Federal Deposit Insurance Corporation---currently insures an individual's deposits up to $250,000. The NCUA serves the same function for credit unions.
The FDIC--Federal Deposit Insurance Corporation---currently insures an individual's deposits up to $250,000. The NCUA serves the same function for credit unions.
The FDIC--Federal Deposit Insurance Corporation---currently insures an individual's deposits up to $250,000. The NCUA serves the same function for credit unions.
Which organization regulates banks and thrift associations?
- Federal Deposit Insurance Corporation
- National Credit Union Association
- Securities and Exchange Commission
- Office of the Comptroller of Currency
While the FDIC and the NCUA provide insurance on bank and credit union deposits, respectively, regulatory oversight of banks is provided by the OCC—the Office of the Comptroller of Currency, a bureau of the Treasury Department.
While the FDIC and the NCUA provide insurance on bank and credit union deposits, respectively, regulatory oversight of banks is provided by the OCC—the Office of the Comptroller of Currency, a bureau of the Treasury Department.
While the FDIC and the NCUA provide insurance on bank and credit union deposits, respectively, regulatory oversight of banks is provided by the OCC—the Office of the Comptroller of Currency, a bureau of the Treasury Department.
While the FDIC and the NCUA provide insurance on bank and credit union deposits, respectively, regulatory oversight of banks is provided by the OCC—the Office of the Comptroller of Currency, a bureau of the Treasury Department.
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