Roosevelt & the Banking Crisis

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  • Created by: Lily
  • Created on: 09-05-13 14:41

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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Roosevelts Actions

  • 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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