Finance Questions

Posts Tagged ‘reconstruction finance corporation’

Below is a summary of the FDIC history or the history of the Federal Deposit Insurance Corporation. The FDIC history below also provides the timeline for the FDIC activities throughout its history. Note that the FDIC history below is only a summary, there are much more to the history of the FDIC which are not discussed here. The laws below pertains the early FDIC history. 

Federal Reserve Act of 1913 Congress created the Fed or Federal Reserve System with the Federal Reserve Act of 1913.

Glass-Steagal Act of 1932

The US banking system collapsed with 5,711 banks failing daily from 1921 to 1929. The banking crisis of 1920s was at hand. President Herbert Hoover's administration recommended two solutions. The first created the Reconstruction Finance Corporation or RFC in January 1932. The second supported the Glass-Steagal Act of 1932. 

Federal Home Loan Bank Act of 1932

The banking system collapse and crisis led to the Great Depression of 1929 which spurred the creation of the Federal Home Loan Bank Act of 1932 to regulate savings and loans. The act also created the Federal Home Loan Bank Board or FHLBB. 

Banking Act and Emergency Banking Act of 1933

Then came the Banking Act and Emergency Banking Act of 1933. The Banking Act of 1933 created the FDIC. The history of the FDIC officially started in 1933. Read about the FDIC in 1933 here. 

Home Owner's Loan Act of 1933

The Great Depression of 1929 left 40% of home mortgages in default spiking foreclosure rates to record high. Congress then passed the Home Owner's Loan Act of 1933 to regular savings and loan industry but primarily to protect small homeowners. 

National Housing Act of 1934

In 1934, Congress passed the National Housing Act to reduce number of risky mortgages and loans. Subprime mortgages were heavily regulated. 

The Banking Act of 1935

The Banking Act of 1935 established the FDIC as a permanent agency of the federal government. 

Federal Deposit Insurance Act of 1950

The Federal Deposit Insurance Act of 1950 or the FDI made changes to the Banking Act of 1935 and reduced the power of the FDIC. 

Housing Act of 1954

The Housing Act of 1954 was enacted by Congress to amend the National Housing Act of 1934.