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Why might some people have been critical of the FDIC?

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Why might some people have been critical of the FDIC?

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People before in the Great depression lost all of their money because there was no FDIC which gives every bank account up to 250,000. People thought it was a trick to make people lose their money.

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Do you believe that the FDIC was a responsible use of federal funding? Why or why not?

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Do you believe that the FDIC was a responsible use of federal funding? Why or why not?

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I personally believe that the FDIC was a responsible use of federal funding because it made the people trust the banks again and now they can have their money safe at the bank and not having to put it home .

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The FDIC was successful  in maintaining public confidence in the banking system. The US then faced the Great Depression and many people lost there jobs . The unemployment rate was about 25%, and then the banking act was established by the president Franklin D. Roosevelt . They require that banks keep a certain number of reserves. They set up the rules for bank investments (too much money invested in real estate can ruin a bank if real estate drops in value).

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The FDIC had many goals like to open goverment plan demostrates the synergy between the actions taken by the coperation and its overaching Insured depositors are protected from loss without recourse to taxpayer funding. FDIC-insured institutions are safe and sound.

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This document was signed by president Roosevelt on June 16, 1933. Also known as the Banking Act of 1933. This document was passed by the congress and prohibits commercial banks from engaging in the investment business.  It was enacted as an emergency response to the failure of nearly 5,000 banks during the Great Depression.

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Glass-Steagall Act (Federal Deposit Insurance Corporation - FDIC)