Roosevelt's bank holiday allowed federal auditors to certify sound banks (which proved to be the vast majority) and shutter the rest, which restored confidence, brought deposits flooding back, halted the cascade of bank failures, and set the country on the road to federal deposit insurance (the FDIC), created initially against Roosevelt's own judgment.

causalpending

Speaker

Eric Rauchway

Evidence Quote

deposits do in fact immediately start coming back into American banks. So this kind of stops the uh the cascade of bank failures in its tracks.

Source

Eric Rauchway on the Great Depression and the New Deal 12/01/2008EconTalk
Created: 6/17/2026, 10:09:28 AM

My Notes

Loading notes...