How Did The Banking Act Of 1933 Entail

History Of FDIC In 1929, the American citizens were awakened to a market crash. The banks no longer had the money that one may have put into the bank. The people of the United States no longer had integrity in the banks. Many people were hiding their money in the walls and in mattresses because they believed the government stole their money. This depression and economic crisis went on for four years before President Roosevelt signed the Banking Act of 1933. The purpose of this act was to restore the confidence in the banks. Just Like that the FDIC was created. What exactly did the Banking act of 1933 entail? To start President Roosevelt came up with this idea to help the citizens restore their faith in him and the banks. To prevent losing another one point seven billion dollars of deposited money and to prevent another Great Depression. The bill was passed and designed to provide safer and effective use of the banks holding onto one's personal assets. It was made to

The FDIC also has resources on how one can better manage their money to prevent bank failure and or if you have been through bank failure. No one has lost a penny since 1933 because the FDIC was put into place. Trust and retirement funds are also protected by this act. After the act was put into place the banks went into a three day holiday. The government sent government bankers into each bank to see what banks needed to close and which ones could stay open. They made this decision based on people and amount of money in the bank or if their books were not clean. The FDIC still till this day make sure they work with and keep healthy banks opens to lower the risk of depositors losing their money. However it does not prevent loses from cyber crime or fraud that is your banks job to handle and decide