<P> The Glass -- Steagall Act limited commercial bank securities activities and affiliations between commercial banks and securities firms to regulate speculations . It also established the Federal Deposit Insurance Corporation ( FDIC ) , which insured deposits for up to $2,500 , ending the risk of runs on banks . This banking reform offered unprecedented stability : While throughout the 1920s more than five hundred banks failed per year ; it was less than ten banks per year after 1933 . </P>
<P> The Glass -- Steagall Act limited commercial bank securities activities and affiliations between commercial banks and securities firms to regulate speculations . It also established the Federal Deposit Insurance Corporation ( FDIC ) , which insured deposits for up to $2,500 , ending the risk of runs on banks . This banking reform offered unprecedented stability : While throughout the 1920s more than five hundred banks failed per year ; it was less than ten banks per year after 1933 . </P>
the new deal legislation that insures individual deposits up to a specific dollar amount is known as
the new deal legislation that insures individual deposits up to a specific dollar amount is known as
Federal Deposit Insurance Corporation ( FDIC )
Federal Deposit Insurance Corporation ( FDIC )