Why did bank runs increase in the late 1920s? New regulations increased taxes on bank savings. Consumers believed that banks owned failing companies. The government warned people that their money was at risk. People feared that the banks would close permanently.

Question

History

Xavier Cantrell

2 March, 01:45

Why did bank runs increase in the late 1920s? New regulations increased taxes on bank savings. Consumers believed that banks owned failing companies. The government warned people that their money was at risk. People feared that the banks would close permanently.

+2

Answers (1)

Know the Answer?

Adalyn Preston · Answer 1

People feared the banks would close, which would result in losing all their money. This was around the Great Depression era. A lot of banks were closing because people were withdrawing there assets before they lost it all.