The state of Banking
- By March 1933 many states had already closed their banks
- The NY Stock Exchange suspended trading on the day of Roosevelts inauguration
- Banks only had $6 billion cash to meet $41 billion deposits
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- March 1933 Emergency Banking Act - 4 day bank holiday which gave the treasury the power to investigate all banks. This was supported by the RFC which took over bank debts.
- June 1933 Glass-Steagall Act - Prevented "high street" banks in taking part in investment banking. Guaranteed all bank deposits up to $5,000.
- June 1934 - Securities and Exchange Comission - Regulated the stock market
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Was he sucessfull?
- 70% were able to reopen by the end of March 1933
- Roosevelts first 2 terms saw less banks closures than any previous administration
- For the first time in almost 60 years, there were almost no bank closures in 1936
- $1 billion had been deposited into banks by the end of March 1933
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