From A History of the FDIC 1933-1983:

“The terms “bank suspensions” and “bank failures” are often used inter-changeably. Technically, however, “suspensions” include all banks that are closed because of financial difficulties, whereas “failures” are limited to those suspended banks that were placed in the hands of receivers and resumed operations. In either instance, the assumption is that the suspended bank actually failed, though rehabilitation later occurred. […]

In all, 1,350 banks suspended operations during 1930. Bank failures during the previous decade had been confined primarily to agricultural areas; this no longer was the case in 1930. In fact, the Bank of United States, one of the nation’s largest banks based in New York City, failed that year. The large jump in bank failures in 1930 was accompanied by an even greater increase in depositor losses. […]

The Banking Act of 1933 provided for termination of the Temporary Federal Deposit Insurance Fund and the inauguration of the permanent insurance plan on July 1, 1934.”


 Background file: 6-Contessi-PDU-Post6-BankSuspensionsUS.zip


 

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