Which U.S. government program was created in 1933 after the stock-market crash to insure bank deposits?

The Federal Deposit Insurance Corporation was created in 1933 after the stock-market crash and bank failures to insure U.S. bank deposits.

Congress established the FDIC through the Banking Act of 1933, signed by President Franklin D. Roosevelt. Deposit insurance addressed a central weakness exposed during the Great Depression: when banks failed, depositors could lose their savings, encouraging more people to withdraw cash and worsening bank runs.

The FDIC began insuring deposits in 1934. Its creation helped restore public confidence in the banking system, although it did not insure stock-market investments. That distinction is important: FDIC protection applies to eligible deposits at member banks, while securities such as shares and mutual funds carry market risk.

The Securities and Exchange Commission was also created during the New Deal era, but its role is regulating securities markets and enforcing federal securities laws. The FDIC is specifically the institution associated with federal deposit insurance and bank-failure protection.