Securities and Exchange Commission HISTORICAL SOCIETY 2019 Annual Report 2019 Annual Report The 2019 Annual report includes the narrative of activities, list of donors and audited financial statements of the Securities and Exchange Commission Historical Society from January 1 through December 31, 2019. Misson The mission of the Securities and Exchange Commission Historical MAY 5, 1929 – FEBRUARY 15, 2020 Society is to share, preserve and advance knowledge of the history of financial regulation. The Society is a This report is dedicated to 501(c)(3) not-for-profit organization David S. Ruder independent of the U.S. Securities and Exchange Commission. The Board and staff of the Securities and Exchange Commission Historical Society On the cover are greatly saddened by the loss on June 3, 2019 – Roundtable of Current February 15, 2020 of the Society’s co-founder, and Former SEC Chairs David S. Ruder. (Left to Right: William Donaldson, After an illustrious career as Chairman Christopher Cox, Richard Breeden, of the U.S. Securities and Exchange Mary Schapiro, Arthur Levitt, Elisse Walter, Commission and Dean of Northwestern Harvey Pitt, Mary Jo White, David Ruder, University School of Law, David helped Jay Clayton) launch the SEC Historical Society in 1999 and served as the organization’s first Chairman from 1999 to 2003. At our recent 20th anniversary celebration, the SEC Historical Society paid tribute to David for his dedication and invaluable Securities and Exchange Commission service. We extend our heartfelt condolences Historical Society to David’s family for their loss. 1101 Pennsylvania Avenue NW, Suite 300 Washington, DC 20004 Phone: 202-756-5015 www.sechistorical.org ©2020 Securities and Exchange Commission Historical Society. 2 | SEC HISTORICAL SOCIETY // 2019 ANNUAL REPORT Designed by Elzer Design Lab. Letter from the President Dear Friends, the history of US financial regulation. On behalf of my fellow Trustees, I hope that you Their story and and your families are well during these uncertain personal reflections times. While much has transpired in the past are captured in a months, we look back at last year positively and moving video and are pleased to share our 2019 Annual Report, exhibit permanently complete with the audited financial statements placed in the virtual of the Securities and Exchange Commission museum. Historical Society. The evening was capped by remarks from You will find more details inside, but the Chairman Clayton, who saluted the hundreds brightest highlights of this past year were the of dedicated and talented staff of the Commission commemoration events for two important 2019 in Washington, DC and in regional offices around anniversaries – the 85th birthday of the U.S. the country, who work tirelessly every day to Securities and Exchange Commission, and the fulfill the agency’s mission. It was a special 20th year of the founding of the Securities and afternoon and evening that I hope our guests Exchange Commission Historical Society. On the will long remember. afternoon of June 3, to celebrate the missions of both organizations, we were pleased to welcome As wonderful as the commemoration day’s every living former SEC Chair in a live webcast programming was, it represents only a part moderated by current SEC Chairman Jay Clayton. of our programming in 2019. As you will see The Chairman’s questions were thoughtful and in our Annual Report, 2019 saw other notable engaging, and the panelists’ responses were frank accomplishments. Of course, none of these and reflective of the unique internal and external initiatives would have been possible without forces influencing their tenures and experience. the generous financial support from the Society’s The audience was rapt. loyal donors, ticket purchasers, and table sponsors. On page 12 of the Report, we give The program following the roundtable was our heartfelt thanks to the many individuals significant for two reasons. First, before an and organizations who provided their financial audience of over 700 dinner guests, we paid support to the Society in 2019. tribute to the founding members of the SEC Historical Society – Paul Gonson, Harvey Pitt, Thank you for taking an interest in our progress and David Ruder. Twenty years ago, these three over the past year. I wish you strength and good volunteered their time, resources and expertise in health in the coming months. a collaboration to launch the Society as a 501(c)(3) non-profit organization dedicated to preserving Sincerely, Arthur B. Laby 3 | SEC HISTORICAL SOCIETY // 2019 ANNUAL REPORT Governance 2019 BOARD OF TRUSTEES 2019 BOARD OF ADVISORS • Thomas O. Gorman, Chairman The Board of Advisors is a corps of committed volunteer • Arthur B. Laby, President leaders who, while not subject to the governance and fiduciary • Mark D. Cahn, Secretary responsibilities of the Board of Trustees, work to advance the • Susan G. Markel, Treasurer mission and work of the Society. • Joan E. McKown, President-Elect • David A. Lipton, Class of 2020 • James McKinney Vice President, Museum • J. Bradley Bennett • Lona Nallengara • James W. Barratt, • Andrew J. Ceresney • Troy A. Paredes Vice President, Development & • James F. Clark • Marianne Smythe Engagement • Marc J. Fagel • Kristofer K. Swanson • K. Susan Grafton • Michael D. Trager • William R. Baker III • Keith F. Higgins • Martin S. Wilczynski • David P. Bergers • Christopher Holmes • Richard C. Breeden • Hope Jarkowski Class of 2022 • Timothy P. Burke • Ronald C. Long • Bradley J. Bondi • James R. Burns • Michael D. Mann • Robert L.D. Colby • Alan L. Dye • Robert E. Plaze • Peter Derby • Lisa M. Fairfax • Brian L. Rubin • Marc B. Dorfman • Daniel L. Goelzer • Michael Ryan • Daniel M. Gallagher • Robert W. Helm • Joel Seligman • Gary L. Goldsholle • Roberta S. Karmel • William J. Williams, Jr. • Parveen P. Gupta • Neil S. Lang • Brian Neil Hoffman • Annette L. Nazareth Class of 2021 • Robert S. Khuzami • John J. Okray • David W. Blass • Thomas J. Kim • Barry W. Rashkover • Steven E. Bochner • Marc A. Leaf • Lori A. Richards • Brian Breheny • Joshua E. Levine • Richard Y. Roberts • Samuel L. Burke • David M. Lynn • Claudius O. Sokenu • James H. Cheek, III • Michael F. Maloney • Joseph B. Ucuzoglu • Stephen L. Cohen • Thomas J. McGonigle • Dixie L. Johnson • Carlos M. Morales • Stuart J. Kaswell • Brian P. Murphy • Richard A. Kirby • Jack W. Murphy • Philip E. Kruse • John F. Olson • Donald C. Langevoort • Sheldon L. Ray • Kathryn B. McGrath • Herbert S. Wander 4 | SEC HISTORICAL SOCIETY // 2019 ANNUAL REPORT Trustees-Advisors Breakfast | June 4, 2019 In June, our Advisors and Trustees gathered for an in-person breakfast meeting. 5 | SEC HISTORICAL SOCIETY // 2019 ANNUAL REPORT Report from the Executive Director 85th Anniversary of the SEC & 20th Anniversary of the SEC Historical Society After months of planning with an exceptionally capable host Dear Friends: committee of the Board of Trustees, the Society held a reception and dinner for over 700 guests with keynote remarks by SEC Chairman The Society’s core mission Jay Clayton to commemorate the 85th anniversary of the U.S. is accomplished through Securities and Exchange Commission and the 20th birthday of the the work we undertake to Society. build, maintain, and make accessible, the unique As part of the dinner program, we acknowledged the many current history that resides in and former SEC staff and Commissioners for their work to protect the Virtual Museum and investors, maintain fair and orderly markets, and facilitate capital Archive. formation over the SEC’s 85-year history. Over the course of the We also took time to honor past year, we conducted and thank the Society’s three ten new oral history inter- co-founders, David Ruder, views, accessioned scores of Harvey Pitt and Paul Gonson. papers, photos, and other The “founders video” we distinctive materials, and created for the program is planned and conducted now featured prominently on the four major programs the homepage of the virtual outlined in this report. museum to provide visitors an overview of the Society’s We could not have accom- origins and mission. plished so much without the guidance and support We appreciate the dozens of of the Society’s many individuals and organizations generous and loyal who generously sponsored Trustees, Advisors tables or otherwise provided and donors. financial support through the purchase of tickets, and we hope the evening was memorable and fun for our guests and honorees. TOP: Harvey Pitt, David Ruder, Arthur Levitt & Paul Gonson at the Inaugural Reception of the Society, May 11, 2000. BOTTOM: Harvey Pitt, Paul Gonson, Dan Goelzer & David Ruder at the 20th Anniversary of the Society, June 3, 2019 6 | SEC HISTORICAL SOCIETY // 2019 ANNUAL REPORT Roundtable of Current and Former SEC Chairs On the afternoon of the anniversary dinner, Chairman Clayton moderated a special program featuring nine former SEC Chairs in a thought-provoking roundtable on a range of topics. He explored how Roundtable of Former they dealt with unexpected challenges; the best advice that helped SEC Chairs, June 3, 2019 in their role as Chair; changes in the markets that impacted their priorities; and their thoughts about areas of the current marketplace which may pose new challenges or risk. The dialogue provided unique insights into the hearts and minds of these former Commission leaders and left the audience with a greater appreciation for the skills each brought to bear during his/her tenure. Morgan Lewis Presents 2019 On September 24, Morgan, Lewis and Bockius LLP sponsored its tenth annual live audience and live broadcast event with Spotlight on SEC Cyber Trends: A Conversation with Carolyn Welshhans. In this program, Ms. Welshhans, Associate Director and acting Cyber Unit Chief in the SEC’s Enforcement Division discussed trends in today’s emerging cyber landscape with Morgan Lewis partner Ivan Harris. Topics included initial coin offerings (ICOs), trading, hacking, account intrusion, manipulations, cybersecurity controls, and issuer disclosures.