Before 1933, what happened to customers' deposits if a bank failed? The bank had to reimburse the customers. The government reimbursed the customers. The customers lost their money.

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Philip Hatfield

20 December, 23:56

Before 1933, what happened to customers' deposits if a bank failed? The bank had to reimburse the customers. The government reimbursed the customers. The customers lost their money.

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Braggs · Answer 1

The customers lost their money.

I read up on a couple articles and none of them stated the bank or government paying the people back. It did state that "The state of American banks in 1933 was unsure, and there was widespread fear, based on previous closures, that banks funds were mismanaged and that hard-earned deposited money could disappear overnight."