The Banking Act of 1933 Reorganizes the American Banking System
At a glance:
- Series: Great Events from History II: Business and Commerce Series
- Categories: Government and Politics, Economics
- Subcategories: Business, Laws, Acts, Legislation, Banks, Banking, Finance
- Curriculum: American History 1901-1950
- Geographical Location: Washington, D.C.
- Date: June 16, 1933
Article abstract: The Banking Act of 1933 established deposit insurance, regulated interest paid on deposits, prohibited underwriting of corporate securities by commercial banks, and restricted loans to buy securities.
Summary of Event
Failure of hundreds of American banks each year in the 1920’s, and then thousands of them in the period from 1930 to 1933, dramatized the inadequacies of the existing banking and financial oversight system. Senator Carter Glass began pushing for reform of the system in 1931. The Senate Banking Committee, when it reported...
[The entire page is 2459 words long]