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Needless to say, this failed, and even people without money in the stock market lost most of their savings. One of his programs that fit into the reform category, and aimed to build up confidence in banking once again was the Federal Deposit Insurance Corporation (FDIC). The aim of this program was to prevent banks from loaning out too much money, by requiring them to carry enough money to cover everyone’s savings they were holding...
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The aim of this program was to prevent banks from loaning out too much money, by requiring them to carry enough money to cover everyone’s savings they were holding. This is clearly reform, because it was set up to prevent people from loosing money they earned in the future, and prevent another bank crash, which was one of the causes of the depression...
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