| Emergency Banking Act Of 1933 The Emergency Banking Act Of 1933 is a bill passed during the administration of U.S. President Franklin D. Roosevelt in reaction to the financially adverse conditions of the Great Depression. The measure, which called for a four-day mandatory shutdown of U.S. banks for inspections before they could be reopened, sought to re-instill investor confidence and stability in the banking system. Banks were only allowed to re-open once they were deemed financially sound. The act was passed during this shutdown, in hopes that Americans would renew their confidence by the time the banks re-opened. It also extended the power of the president during this time of hardship, allowing him the executive power to make the decisions necessary to salvage the economy. The first banks to re-open were the 12 regional Federal Reserve banks, on March 13. These were followed the next day by banks in cities with federal clearing houses, and the remaining banks deemed fit to operate were allowed to re-open on March 15. Breaking It Down: Each futures exchange has its own clearing house. All members of an exchange are required to clear their trades through...
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