New Deal

Reform progammes

The reform programmes were an expression of belief in the need to regulate the country's financial system in order to preserve public confidence and maintain economic stability. The Federal Deposit Insurance Corporation was given responsibility for supervision of the thrifts and of those banks that were not members of the Federal Reserve System and the Securities and Exchange Commission for the supervision of other financial organisations. The 1933 Glass-Steagall Act (Banking Act) sought to protect depositors by prohibiting commercial banks from engaging in the more risky activity of investment banking.