Franklin D. Roosevelt introduced the 1933 Banking Act that created the Federal Deposit Insurance Corporation after the crash.
The banking crisis following the 1929 market collapse produced widespread bank failures and threatened depositors’ savings. Franklin D. Roosevelt became president in March 1933 and acted quickly during the “bank holiday,” temporarily closing banks while their financial condition was reviewed.
The Banking Act of 1933 established federal deposit insurance through the Federal Deposit Insurance Corporation, or FDIC. It also separated commercial banking from investment banking through provisions commonly called Glass–Steagall. These measures were intended to restore confidence and limit certain risks within the banking system.
The FDIC did not prevent stock prices from falling, and it was not created by the 1929 crash itself. Its creation reflected the broader banking emergency of the Great Depression. Deposit insurance later became one of the most recognizable protections for U.S. bank customers.