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Banking Act of 1933 |
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As part of the Banking Act of 1933, Congress banned interest payments on business checking accounts. The Banking Act of 1933 (i) formalized deposit insurance with the founding of the EDIC, (ii) ended the practice of paying interest on demand deposits, and (iii) instituted Regulation Q; the Banking Act of 1935 restructured the Federal Reserve System into a central bank; and the Emergency Banking Act of March 9, 1933 (the bank holiday) suspended a sizable portion of "unsafe" financial institutions from the banking system. The Financial Services Competitiveness Act of 1997 (HR 10) would repeal the prohibitions in the Banking Act of 1933, commonly known as the |
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