Stephanie Blair and Staci Gelatka

THE GLASS-STEAGALL BANKING ACT OF 1933 AND

THE FDIC

• Passed by congress under Roosevelt

• Shaped the development of banking system

• Reduced bank competition for depositor's money

• Revived confidence in banking system• Banned deposit banks from investment banking

GLASS-STEAGALL BANKING ACT OF 1933

• U.S. Independent government corporation

• Created under Glass Steagall Banking Act

• Established after the Great Depression

• Insure bank deposits during bank failure

• Ended the epidemic of bank failures

FDIC: FEDERAL DEPOSIT INSURANCE CORPORATION

•banned deposit banks from investment banking•buy newly issued stocks/securities •resell them to public for profit•gave Federal Reserve System power•regulate interest rates •savings and time depositsJoseph W.

Barr- 1960

GLASS-STEAGALL BANKING ACT AND GOVERNMENT

•Created Federal Deposit Insurance Corporation•insures deposits to maximum limit•Protected from bank failure•Members of the Federal Reserve System •must buy deposit insurance from FDIC

FDIC AND GOVERNMENT

EFFECTIVENESS

•Immediately:•No, circulation decreased•Increased hoarding•Long-Term:•Yes, exited Great Depression•Continued until repealed in 90s

EFFECTIVENESS CTD.

Allen, Larry. "Glass-Steagall Banking Act (1933)." American Government. ABC- CLIO, 2012. Web. 26 Nov. 2012. "Federal Deposit Insurance Corporation." Encyclopædia Britannica. Encyclopædia Britannica Online School Edition. Encyclopædia Britannica, Inc., 2012. Web. 26 Nov. 2012. <http://school.eb.com/eb/article-9033896>."Chapter 34: The Great Depression and the New Deal | APNotes.net." Chapter 34: The Great Depression and the New Deal | APNotes.net. N.p., n.d. Web. 30 Nov. 2012. <http://www.apnotes.net/ch34.html>.Resnick, Eugene. "The New Deal and the Politics of the 1930s, 1932-1940."Barron's Ap United States History. Hauppauge: Barrons Educational Series Inc, 2012. 252. Print.

"GLASS DEFINES MEASURE: Special to THE NEW YORK TIMES." New York Times [New York] 12 Feb. 1932: 1, 14. Print.

WORKS CITED: INFORMATION

Blue: Secondary SourcePurple: Primary Source

"Franklin D. Roosevelt signs the Banking Act of 1933." Image. Federal Deposit Insurance Corporation. American Government. ABC-

CLIO, 2012. Web. 26 Nov. 2012. "Joseph W. Barr." Image. U.S. Treasury Department. American Government. ABC-CLIO, 2012. Web. 30 Nov. 2012.Federal Deposit Insurance Corporation. Photograph. Encyclopedia Britannica. Web. 26 Nov. 2012. <http://school.eb.com/eb/art-140352>."Bank and Thrift Failures, including Pre-FDIC." Chart. www.thefacultylounge.org. N.p., 27 Oct. 2009. Web. 2 Dec. 2012. <http://www.thefacultylounge.org/2009/10/october-bank-failures-update.html>. "Bank-Failure." Www.thelibertyvoice.com. WordPress, 30 Dec. 2010. Web. 2 Dec. 2012. <http://www.thelibertyvoice.com/2010-worst-year-for-bank- failures-since-1992>.

WORKS CITED: IMAGES