Which U.S. law created the Federal Deposit Insurance Corporation after the Wall Street Crash?

The Banking Act of 1933 created the Federal Deposit Insurance Corporation after the Wall Street Crash.

Signed by President Franklin D. Roosevelt on June 16, 1933, the act established federal deposit insurance to protect eligible bank deposits and restore confidence in the banking system. The FDIC began insuring deposits on January 1, 1934.

The law is widely associated with the Glass–Steagall provisions, which separated commercial banking from investment banking and placed restrictions on banks’ securities activities. Those provisions were part of the broader Banking Act of 1933, rather than a separate law passed in 1932.

Deposit insurance did not prevent stock-market losses, but it addressed bank runs, which had caused many depositors to lose savings during the Depression. The FDIC remains a U.S. government corporation that insures deposits at participating banks.