By Sadie Kiefer & Jeremiah Forehand. Widespread banking failure Cash reserve depleted Banks...
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![Page 1: By Sadie Kiefer & Jeremiah Forehand. Widespread banking failure Cash reserve depleted Banks unable to imburse investors.](https://reader036.fdocuments.us/reader036/viewer/2022081520/56649f045503460f94c18a03/html5/thumbnails/1.jpg)
By Sadie Kiefer & Jeremiah Forehand
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Widespread banking failure
Cash reserve depleted
Banks unable to imburse investors
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No more trust in banks
Unreliable cash circulation
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March 5th, 1933 declared bank holiday
Congress Passed Emergency Bankning Relief Act
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Treasury Dep. inspects banks
Insolvent banks
Self-Sufficient banks
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Established FDIC
Federal Securities Act-banks liable for misrepresentations (May 1933)
Securities Exchange Commission- prevented people “rigging” in stock market
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Bank Failure- cash reserve depleated
Emergency Banking Relief Act- Treasury inspected banks
FDIC- federal insurance for accounts of less than $5,000
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$ Problems of G.D.
Avg. People Stock Investors
Too much creditpayments
Stock Market Crash
Banks fold
Lost jobs
Lack of self-sufficiency
Unable to imburse people with $
Lost jobsDebt, home foreclosures
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1. Who was the ‘new’ role forced to be involved with nations economy, as a result of laws passed in FDR’s first 100 days?
2. What were two reasons why Roosevelt declared a bank holiday?
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1. Who was the ‘new’ role forced to be involved with nations economy, as a result of laws passed in FDR’s first 100 days?
The federal government (e.g., FDIC & SEC)
2. What were two reasons why Roosevelt declared a bank holiday?
1. To prevent further withdrawals2. To pave the way for actions necessary in the emergency banking relief act