The Committee of Inquiry into the South Sea Bubble was established in response to one of the most notorious financial crises of the early 18th century. The South Sea Bubble was a speculative frenzy centered around the South Sea Company, which had been granted a monopoly on trade in the South Seas. As investors poured money into the company, stock prices soared, creating a bubble. By 1720, the bubble burst, resulting in devastating financial losses for many investors, including prominent figures from the aristocracy and government. In the wake of this collapse, the British Parliament initiated an investigation to uncover the underlying misconduct.

The committee's findings, released in June, meticulously documented instances of fraud, including misleading financial statements, insider trading, and corrupt practices among both company directors and political figures. Key individuals were revealed to have manipulated share prices for personal gain, contributing to the financial ruin of thousands of citizens. The inquiry emphasized the need for reform in financial practices and greater accountability in corporate governance.

Among the committee's revelations were the connections between the South Sea Company and various members of Parliament, including accusations that some politicians had been bribed to support the company's interests. This public exposure of corruption marked a turning point in the relationship between government and finance, aiming to restore trust amongst a wary populace. The findings were widely publicized, leading to public outcry and calls for reforms in the regulation of stock markets and company operations.