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 RauchwayEvidence 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.”
Created: 6/17/2026, 10:09:28 AM
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