Reconstruction Finance Corporation Act

E181122

The Reconstruction Finance Corporation Act was a 1932 U.S. law that created a federal agency to provide emergency financial support to banks, railroads, and other key institutions during the Great Depression.

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Label Occurrences
Reconstruction Finance Corporation Act canonical 4

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Statements (48)

Predicate Object
instanceOf New Deal–era legislation
United States federal statute
administeredBy Reconstruction Finance Corporation board of directors
allowedBorrowingLimit $1,500,000,000
appliesTo national banks
railroad companies
state banks
trust companies
authorized federal loans to agricultural credit organizations
federal loans to banks
federal loans to insurance companies
federal loans to railroads
authorizedCapital $500,000,000
classification emergency economic legislation
codifiedIn United States Statutes at Large
surface form: Statutes at Large of the United States
context Great Depression
country United States of America
surface form: United States
created Reconstruction Finance Corporation
dateEnacted 1932-01-22
enactedBy 72nd United States Congress
expandedBy Emergency Relief and Construction Act of 1932
expandedUnder Roosevelt administration
surface form: Franklin D. Roosevelt administration
hasEffect increased federal role in credit markets
provided liquidity to solvent but illiquid institutions
inForceIn United States federal jurisdiction
inspired later federal credit programs
languageOfWork English
legalStatus amended and superseded by later legislation
legislativeChamber United States House of Representatives
United States Senate
motivatedBy bank failures of 1930–1931
credit contraction during the Great Depression
policyArea banking regulation
economic policy
financial stabilization
providedFor government purchase of bank capital notes
government purchase of preferred stock in banks
purpose to provide emergency financing to banks
to provide emergency financing to other financial institutions
to provide emergency financing to railroads
to stabilize the U.S. financial system during the Great Depression
relatedTo Emergency Banking Act
surface form: Emergency Banking Act of 1933

New Deal
shortTitle Reconstruction Finance Corporation Act self-link
signedBy Herbert Hoover
subjectOf United States economic history scholarship
timePeriod interwar period
yearEnacted 1932

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Referenced by (4)

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Herbert Hoover administration notableLegislation Reconstruction Finance Corporation Act
Reconstruction Finance Corporation Act shortTitle Reconstruction Finance Corporation Act self-link
Emergency Relief and Construction Act of 1932 relatedTo Reconstruction Finance Corporation Act
Reconstruction Finance Corporation createdBy Reconstruction Finance Corporation Act