7. Kennedy absorbed attacks which had been earlier directed toward Roosevelt
Richard Whitney became President of the New York Stock Exchange in 1930, serving in that role until 1935. He was one of the most vocal opponents of federal oversight of the exchanges, and established a base in Washington of like-minded financial leaders to fight the bill which created the SEC while it was debated in congress. They established themselves in a Georgetown building which became known in the press as the “Wall Street Embassy”. Arguing that Wall Street and the nation would be better off if it was allowed to regulate itself, they presented the bill as the forefront of communism in America’s financial system, and that it would prevent the economic recovery desired.
In truth, Roosevelt wavered over the appointment of Kennedy to the position for political reasons. He asked a Democratic operative, Frank Walker, to convince Kennedy to turn down the appointment. Kennedy, who was already disappointed that he had not been appointed to the President’s cabinet as Secretary of the Treasury, refused to withdraw his name. After political maneuvering among the President’s advisors and allies, as well as attacks from several opponents, including Scripps Newspapers, Kennedy was selected, subject to confirmation by the Senate. It was then up to Kennedy to bring to Wall Street the changed realities of American investments.