Stocks lose value. Federal Home Loan Bank Act of 1932. Creates the Federal Home Loan Bank Board. Creates the Federal Home Loan Banks. 1933 President Franklin D. Roosevelt temporarily closes all banks.
Many more banks fail.
Banking Act of 1933. Establishes the FDIC as a temporary corporation. Gives the FDIC authority to regulate and supervise some banks. Gives the FDIC authority to provide deposit insurance to banks. Does not allow banks to sell securities.