Journal of Financial Economics, Elsevier, vol. " Stock return variances : The arrival of information and the reaction of traders," Journal of Finance, American Finance Association, vol. " An Examination of Stock Market Return Volatility during Overnight and Intraday Periods, 1964-1989," Lockwood, Larry J & Linn, Scott C, 1990.National Bureau of Economic Research, Inc. NBER Chapters, in: The Regulated Economy: A Historical Approach to Political Economy, pages 145-188, " The Origins of Federal Deposit Insurance," payments system and demonstrated the power of credible regime-shifting policies. The study concludes that the Bank Holiday and the Emergency Banking Act of 1933 reestablished the integrity of the U.S. Americans responded by returning more than half of their hoarded cash to the banks within two weeks and by bidding up stock prices by the largest ever one-day percentage price increase on March 15-the first trading day after the Bank Holiday ended. The contemporary press confirms that the public recognized the implicit guarantee and, as a result, believed that the reopened banks would be safe, as the President explained in his first Fireside Chat on March 12, 1933. Roosevelt used the emergency currency provisions of the Act to encourage the Federal Reserve to create de facto 100 percent deposit insurance in the reopened banks. This article attributes the success of the Bank Holiday and the remarkable turnaround in the public's confidence to the Emergency Banking Act, passed by Congress on March 9, 1933. When the banks reopened on March 13, depositors stood in line to return their hoarded cash. After a month-long run on American banks, Franklin Delano Roosevelt proclaimed a Bank Holiday, beginning March 6, 1933, that shut down the banking system.
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