The Banking Act of 1933 Free Essay

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The Banking Act of 1933

In 1933, the US economy had declined to record depths.(Benston)The Banking Act of 1933 (approved June 16, 1933) extended federal reserve open market activities; created the Federal Deposit Insurance Corporation to insure deposits; and regulated the operations of member banks and seperated security groups. The Banking Act of 1933 is also known as the Glass-Steagall Act of 1933 because it was authored by Senators Carter Glass and Henry Steagall. This act made sure that banks did not get mixed up with Wall Street. Spurred by the 1929 market crash, known better as either the Great Depression or Black Tuesday, and the bank failures that followed, the act was aimed at restoring

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