Question

Discuss

either the major banking reforms or labor relations reforms brought by

President Franklin Roosevelt’s New Deal. Your answer must include specific legislation

and how that legislation brought reform and improvement

Answer 1

A number of banking and monetary reforms were brought in by F Roosevelt. The Emergency Banking Act was sent to the congress in 1993 by the then president. The same was passed and signed into law on the same day. This law opened door for a system that will allow reopening sounds bank under treasury supervision, with federal loans available if needed. This reform led opeening of three quarters of the banks in Federal Reserve within next 3 days. The banking ysytem eventually stabilized, as millions dollars in horaded currency and gold flowed back into the system. Small banks were closed and merged into large banks supporting the whole banking system,

Another act, Glass Steagall Act was also brought into place. This act limited activities and affilitaions of commercial banks and securities firms in order to regulate speculations.FDIC was then also incorporated which ended the risk of run on banks.