USA HISTORY

Detailed explanation-1: -President Roosevelt signs this act on June 16, 1933, to raise the confidence of the U.S. public in the banking system by alleviating the disruptions caused by bank failures and bank runs.

Detailed explanation-2: -FDIC is one of the longest-lasting and greatest accomplishments of the New Deal. Its policies have changed little over the years. Notably, the upper limit on the amount insured per account has risen and regulators have come to favor bank mergers over the bankruptcy of major banking houses.

Detailed explanation-3: -The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.

Detailed explanation-4: -The Glass-Steagall Banking Act stabilized the banks, reducing bank failures from over 4, 000 in 1933 to 61 in 1934. To protect depositors, the Act created the Federal Deposit Insurance Corporation (FDIC), which still insures individual bank accounts.

Detailed explanation-5: -On June 16, 1933, President Franklin Roosevelt signed the Banking Act of 1933, a part of which established the FDIC.