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Stock market has just took a huge crash, bieng one of the biggest contributors of the Great dpression, many banks fail because loans to stock speculators are never paid back. The U.S. expirence the longest mose severe recession in history.
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Tarrifs on imports increase, preventing free trade, and depression lengthens.
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Unemployment is 25 percent.
National income is 50 percent below that of 1929,
Stock market is 75 percent below its 1929 high,
Mnay Banks and Unions are shutting down. -
Federal Governmnet, provides loans to coutnless financing agencies, many of which loose the the money to unqualified borrowers, creating a snowball effect in the banking collapse.
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Establishes the Federal Home Loan Banks (FHLBs),
Gives the FHLBB authority to regulate and supervise S&Ls.
Gives FHLBs the authority to lend to S&Ls to finance home mortgages, puts many americans in single family homes. -
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temporarily closes all U.S. banks.
Approximately 4,000 commercial banks fail.
1,700 S&Ls fail.
Foreclosures clog banks and S&Ls with unsaleable assets. -
This act requires strong disclosure statements of publicly held corporations, which deprives bankers of their monopoly on information.
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"Establishes the FDIC as a temporary government corporation
Gives the FDIC authority to provide deposit insurance to banks" -
The FDIC deposit insurance goes into temporary effect on January 1, 1934. The deposit insurance level is $2,500.
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Establishes the FDIC as a permanent agency of the government Provides for permanent deposit insurance and maintains it at the $5,000 level.
