The Banking Act of 1935

Question 1

Reason

Answer 1

• Roosevelt
• 1935
• managed to save banks in 1933
• but control still divided
• between federal reserve, states + big banks

Question 2

Impact

Answer 2

-Created Federal Reserve Board over 12 regional branches.
-strengthened central banking system
-gave financial powers to board and by taking from powerful banks
—–>no more bank collapses after 1936
—–>little paid out in deposit insurance
=less likely to repeat crisis of 1929

but. ..
- Opposition from bankers who didn’t want to lose control.