How did FDR reform banking, finance and government revenue during the first 100 days?

By Sadie Kiefer & Jeremiah Forehand How did FDR reform banking, finance and government revenue during the first 100 days?

Problem by 1933 • Widespread banking failure • Cash reserve depleted • Banks unable to imburse investors

Results of bank failure • No more trust in banks • Unreliable cash circulation

Roosevelt's solution • March 5th, 1933 declared bank holiday • Congress Passed Emergency Bankning Relief Act

Emergency Banking Relief Act • Treasury Dep. inspects banks • Insolvent banks • Self-Sufficient banks

Reorganizing Banking System • Established FDIC • Federal Securities Act-banks liable for misrepresentations (May 1933) • Securities Exchange Commission- prevented people “rigging” in stock market

Key Words • 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 credit payments Stock Market Crash Banks fold Lack of self-sufficiency Lost jobs Unable to imburse people with $ Debt, home foreclosures Lost jobs Money Problems Expanding during G.D.

Review • Who was the ‘new’ role forced to be involved with nations economy, as a result of laws passed in FDR’s first 100 days? • What were two reasons why Roosevelt declared a bank holiday?

Q&A’s • 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 withdrawals 2. To pave the way for actions necessary in the emergency banking relief act

How did FDR reform banking, finance and government revenue during the first 100 days?