Federal Deposit Corporation Insurance
By any standard, deposit indemnity was an immediate succeeder in restoring constancy to the system. The bank building loser grade dropped precipitously, with only nine ascertained banks failing during 1934. During the 30-year period beginning with World War II,the working of the economy and the conservative behavior of bank governors and the banking industry created a situation that posed few risks to the fiscal system, and the grandness of deposit insurance in asserting stability declined. Indeed, Wright Patman, the then-Chairman of the business firm banking committee, argued in a speech in 1963 that there were too few bank failures - that we had acted too far in the direction of bank base hit.
