Bank Runs & The Federal Reserve

Before the FDIC (Federal Deposit Insurance Corporation), people's savings accounts were not insured if the bank went bankrupt. During the Great Depression, people all wanted to get their money from the banks at the same time, but the banks didn't have the money and many people lost part or all of their savings. This was called a bank run. The film, It's a Wonderful Life depicts what a bank run looked like and explains why the banks didn't have the money on hand.

Watch the video about the Central Bank of the United States to provide some background knowledge about the Federal Reserve ('The Fed").