Federal Deposit Insurance Corporation (FDIC)

Before Congress did Franklin Delano Roosevelt sit on March 9, 1933 to address the ills of the nation’s banking system. At that point, the United States’ banking system was temporarily dormant, “Suffice it to say that the government has been compelled to step in for the protection of depositors and the business of the nation” (Roosevelt, Message to Congress on Resumption of Banking). Approximately three months later, on June 16, Roosevelt signed the Banking Act of 1933 into law. Along with other lasting impacts, the Banking Act of 1933 created the Federal Deposit Insurance Corporation (FDIC) in an attempt to provide stability to the failing economy (Stammers, The History of the FDIC). The creation of the FDIC largely continues to serve its original purpose: to promote public confidence in the banking sector.
The FDIC was created in response to thousands of bank failures during (and contributing to) the Great Depression. Before the establishment of the FDIC, bankruptcy resulted in the loss of funds depositors had appropriated in various banks (Brinkley, American History: A Survey). The failure of 9,000 banks by March 1933 undoubtedly produced the loss of thousands in…show more content…
Now, 82 years later, the FDIC continues (largely advantageously) to cultivate public confidence in the United States’ financial system. 
Works Cited
Brinker, Bob. "What Are the Advantages and Disadvantages of Deposit Accounts?" Bob Brinker's Land of Critical Mass : Bobbrinker.com Marketimer © Moneytalk Bob Brinker. Precision Information LLC, 25 June 2009. Web. 06 Mar. 2015.
Brinkley, Alan. "Chapter 24." American History: A Survey. New York: McGraw-Hill Higher Education, 2009. 683-706. Print.
"Federal Deposit Insurance Corporation." FDIC: Who Is the FDIC? Federal Deposit Insurance Corporation, 30 Oct. 2014. Web. 26 Feb.