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Deposit Insurance and the Banking Crisis of 1933
The banking crisis of 1933 is arguably the worst US financial crisis since the Federal Reserve’s founding.
Crisis management required extraordinary measures, including blanket deposit guarantees, suspension of the gold standard, and government capital investments in weakly capitalized banks.
Limited federal deposit insurance alone will not prevent a banking crisis caused by bank solvency issues.
Crisis management required extraordinary measures, including blanket deposit guarantees, suspension of the gold standard, and government capital investments in weakly capitalized banks.
Limited federal deposit insurance alone will not prevent a banking crisis caused by bank solvency issues.
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