Case | HBS Case Collection | January 1999 (Revised January 2008)

The U.S. Banking Panic of 1933 and Federal Deposit Insurance

by Julio J. Rotemberg and Sabina M. Ciminero

Abstract

After highlighting some key developments in the banking history of the United States, the case illustrates the Banking Panic of 1933 and the way in which Franklin D. Roosevelt dealt with it at the beginning of his presidency. Describes the main components of banking reform bills that members of Congress proposed in April 1933. Deposit insurance figured prominently in these bills, and the case summarizes the contemporary debate surrounding this proposed insurance.

Keywords: Government Legislation; Insurance; Crisis Management; Financial Crisis; Banks and Banking; Business and Government Relations; Banking Industry; United States;

Citation:

Rotemberg, Julio J., and Sabina M. Ciminero. "The U.S. Banking Panic of 1933 and Federal Deposit Insurance." Harvard Business School Case 799-077, January 1999. (Revised January 2008.)