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The Glass- Steagall Banking Act of 1933 and the FDIC

The Glass- Steagall Banking Act of 1933 and the FDIC. Stephanie Blair and Staci Gelatka. Glass- Steagall Banking Act of 1933. Passed by congress under Roosevelt Shaped the development of banking system Reduced bank competition for depositor's money Revived confidence in banking

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The Glass- Steagall Banking Act of 1933 and the FDIC

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  1. The Glass-Steagall Banking Act of 1933 and the FDIC Stephanie Blair and Staci Gelatka

  2. Glass-Steagall Banking Act of 1933 • 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

  3. FDIC: FEDERAL Deposit Insurance Corporation • 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

  4. Glass-Steagall Banking Act and government • 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 deposits Joseph W. Barr- 1960

  5. FDIC 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

  6. Effectiveness

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• No, circulation decreased • Increased hoarding • Long-Term: • Yes, exited Great Depression • Continued until repealed in 90s

  8. Works Cited: information • 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. Blue: Secondary Source Purple: Primary Source

  9. Works Cited: Images • "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>.

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