
Author: Kevin Daley
History According To Kevin Daley
Federal Deposit Insurance Corporation
Established on June 16, 1933, through none other than the Banking Act of 1933, the Federal Deposit Insurance Corporation was just one of President Franklin Delano Roosevelt’s many countermeasures to the great depression ("Federal Deposit Insurance Corporation."). The FDIC, as it is called, was founded with the intention to soften the blow of bank runs and failures on an already roughed up American economy (Sherrow 76).
The corporation was initially established as a form of temporary relief, responsible for dishing out money (loans of up to $2,500) to eligible banks in order to keep them afloat, and in the grander scheme of things, stabilize the entire economy (Brinkley 629). Over time, however, the FDIC took on the role of a more permanent reform, and via the Banking Act of 1935, cemented itself as an integral part of the modern day banking system ("Federal Deposit Insurance Corporation.").
Despite the widespread popularity that rooted the program in American economy forever, and the fact that it was not particularly harmful to any given citizen, the FDIC was not without critics. Many debates arose regarding the setbacks of the system; one common point was that while the failure of many banks were inevitable, there were also plenty of tanked banks as a result of poor leadership, and having no real way to differentiate the two, the FDIC would be rewarding banks that ran themselves into the ground ("Federal Deposit Insurance Corporation." FDIC: The First Fifty Years.). Another more politically based argument came from flustered conservatives who saw the whole thing as too much government involvement. Sympathetic to this theory were those who wanted to limit the government’s power, and as a result, saw banks’ dependency on them as an edge for liberal ideology ("Federal Deposit Insurance Corporation." FDIC: The First Fifty Years.).
All in all, the FDIC proved to be a very effective addition to the U.S. economy. Only months after its creation, the corporation had insured 97% of bank depositors nation wide ("The FDIC: A History of Confidence and Stability."). The program protected the savings of many everyday civilians and reestablished the confidence at the grass roots of the economy that was necessary in order to eventually emerge from the depression. Even today the Corporation maintains its success and brings some stability to an ever-fluctuating system (Federal Deposit Insurance Corporation (FDIC) | United States Banking.").



Bibliography
1. "Federal Deposit Insurance Corporation." FDIC: The First Fifty Years. N.p., n.d. Web. 18 Feb. 2016. <https://www.fdic.gov/bank/analytical/firstfifty/chapter3.html>.
2. "The FDIC: A History of Confidence and Stability." FDIC: A History of Confidence and Stability. N.p., n.d. Web. 18 Feb. 2016. <https://www.fdic.gov/exhibit/p1.html#/5>.
3. "Federal Deposit Insurance Corporation." FDIC: Historical Timeline. N.p., n.d. Web. 18 Feb. 2016. <https://www.fdic.gov/about/history/timeline/1930s.html>.
4. "Federal Deposit Insurance Corporation (FDIC) | United States Banking." Encyclopedia Britannica Online. Encyclopedia Britannica, n.d. Web. 18 Feb. 2016. <http://www.britannica.com/topic/Federal-Deposit-Insurance- Corporation>.
5. Brinkley, Alan. Unfinished Nation. Place of Publication Not Identified: Mcgraw-Hill Education, 2013. Print.
6. Sherrow, Victoria. Hardship and Hope: America and the Great Depression. New York: Twenty-First Century, 1997. Print.
Images:
http://2.bp.blogspot.com/_bKXlng-gpg0/STUY3eoZjxI/AAAAAAAAEYk/72vBccFQZxA/s400/fdic-seal.jpg
https://www.fdic.gov/bank/analytical/firstfifty/fdr.jpg