In order to stop the spread of the Depression, the government took many actions. One of these actions was creating the Banking Act of 1933. This act was passed to deal with the inconsistent and often lax regulatory oversights and regulations applicable to financial institutions. The Banking Act also established a federal insurance guarantee for deposits up to $25,000 (now $250,000) on each account at either a state or national bank by establishing the Federal Deposit Insurance Corporation (FDIC). With the establishing of FDIC, citizens could feel safe keeping their money in the bank. Another action the government took was passing the Glass-Steagail Act. This act separates the commercial banking from investment banking; it also prohibited commercial
