What legislation set standards for FDIC member banks?

Banking Act of 1935 (P.L. 74-305, 49 STAT. 684). Established the FDIC as a permanent agency of the government.

What did the FDIC Act do?

An independent agency of the federal government, the FDIC was created in 1933 in response to the thousands of bank failures that occurred in the 1920s and early 1930s. The FDIC insures trillions of dollars of deposits in U.S. banks and thrifts – deposits in virtually every bank and savings association in the country.

What is Section 19 of the FDIC Act?

Section 19 of the Federal Deposit Insurance Act prohibits individuals that are convicted of certain criminal offenses from participating in the affairs of an insured depository institution without the written consent of the FDIC.

What regulations do banks have to comply with?

The act commonly known as the Bank Secrecy Act (“BSA”) (1970) requires all financial institutions, including banks, to establish a risk-based system of internal controls to prevent money laundering and terrorist financing.

What law allows banks to take your money?

The Dodd-Frank Act
The Dodd-Frank Act. The law states that a U.S. bank may take its depositors’ funds (i.e. your checking, savings, CD’s, IRA & 401(k) accounts) and use those funds when necessary to keep itself, the bank, afloat.

What is the FDIC during the Great Depression?

Federal Deposit Insurance Corporation (FDIC), independent U.S. government corporation created under authority of the Banking Act of 1933 (also known as the Glass-Steagall Act), with the responsibility to insure bank deposits in eligible banks against loss in the event of a bank failure and to regulate certain banking …

What is the section 19?

Section 19 in The Indian Contract Act, 1872. 19. Voidability of agreements without free consent. —When consent to an agreement is caused by coercion, 1[***] fraud or misrepresentation, the agreement is a contract voidable at the option of the party whose consent was so caused.

Is the FDIC a relief recovery or reform?