[T] Bank Reaction to Intro of FDIC Deposit Insurance

From a TIME magazine article in 1933 at introduction of FDIC and deposit insurance:

Through the great banking houses of Manhattan last week ran wild-eyed alarm. Big bankers stared at one another in anger and astonishment. A bill just passed by both houses of Congress would rivet upon their institutions what they considered a monstrous system of guaranteeing bank deposits. Such a system, they felt, would not only rob them of their pride of profession but would reduce all U. S. banking to its lowest level. They saw their deposits which they had spent a lifetime to build up and protect with their good names confiscated by the Government to pay for the mistakes and dishonesty of every small town bankster.

Read more: http://www.time.com/time/magazine/article/0,9171,745617,00.html#ixzz0lqeB5Ghm

Related posts:

  1. The Promise and Peril of Comprehensive Deposit Insurance
  2. E*Trade and FDIC Insurance
  3. Readings: Deposit Insurance, Gas, Brazil, Red Pens and PE Fraud
  4. Unintended Consequences and Deposit Insurance
  5. Quiz Question: Only OECD Country Without Deposit Insurance