What was the goal of president Roosevelt's bank holiday in the passage of the glass-steagall act?

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Jean Mcclure

4 April, 14:22

What was the goal of president Roosevelt's bank holiday in the passage of the glass-steagall act?

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Jamir Melendez · Answer 1

The goal of President Franklin D. Roosevelt's bank holiday was to give financially responsible banks currency so that they may reopen for the public.

Before this bank holiday, thousands of banks all over the US were closing permanently. This was due to the start of the Great Depression. So many individuals went to get their money out of the bank at one time that many banks ran out of money. Banks lacked currency due to the fact that they invested and lost millions of their clients money in the stock market.

In order to bring stability back to the banking industry, FDR called for a bank holiday. This four day break resulted in the federal government giving money to banks who showed a record of appropriate behavior/investing so that they could reopen. Banks who were irresponsible with client money were restructured and regulated by the federal government.