by sadie kiefer & jeremiah forehand. widespread banking failure cash reserve depleted banks...

By Sadie Kiefer & Jeremiah Forehand

Widespread banking failure

Cash reserve depleted

Banks unable to imburse investors

No more trust in banks

Unreliable cash circulation

March 5th, 1933 declared bank holiday

Congress Passed Emergency Bankning Relief Act

Treasury Dep. inspects banks

Insolvent banks

Self-Sufficient banks

Established FDIC

Federal Securities Act-banks liable for misrepresentations (May 1933)

Securities Exchange Commission- prevented people “rigging” in stock market

Bank Failure- cash reserve depleated

Emergency Banking Relief Act- Treasury inspected banks

FDIC- federal insurance for accounts of less than $5,000

$ 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

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?

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