Which 1935 U.S. law created the Federal Deposit Insurance Corporation's permanent structure?

The Banking Act of 1935 created the Federal Deposit Insurance Corporation's permanent structure.

Congress passed the law during the New Deal era to reorganize and strengthen the U.S. banking system. It made the FDIC a permanent government corporation after the temporary deposit-insurance arrangements created under the Banking Act of 1933. The 1935 act also expanded the Federal Reserve's powers and changed the organization of the Federal Reserve System.

The FDIC protects depositors at insured banks up to a statutory limit, subject to the rules in force. Deposit insurance is designed to reduce bank runs by assuring customers that covered deposits will not simply disappear if an insured bank fails. The FDIC does not insure investments such as stocks, bonds, or mutual funds.

A common mix-up is to identify the Glass-Steagall Act of 1933 as the permanent FDIC law. The 1933 legislation created the FDIC, but the Banking Act of 1935 established its lasting structure. The two acts are closely related parts of Depression-era banking reform.