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What is Reconstruction Finance Corporation mean?
The Reconstruction Finance Corporation was a government corporation administered by the United States Federal Government between 1932 and 1957 that provided financial support to state and local governments and made loans to banks, railroads, mortgage associations, and other businesses. Its purpose was to boost the country's confidence and help banks resume daily functions after the start of the Great Depression. The RFC became more prominent under the New Deal and continued to operate through World War II. It was disbanded in 1957, when the US Federal Government concluded that it no longer needed to stimulate lending.
The RFC was an independent agency of the US Federal Government, and fully owned and operated by the government. The idea was suggested by Eugene Meyer of the Federal Reserve Board of Governors, recommended by President Hoover, and established by Congress in 1932. It was modeled after the US War Finance Corporation of World War I. In total, it gave US$2 billion in aid to state and local governments and made many loans, nearly all of which were repaid.
The agency played a major role in recapitalizing banks in the 1930s and it was effective in reducing bank failures and stimulating bank lending. It also helped to set up relief programs that were taken over by the New Deal in 1933.
referencePosted on 01 Dec 2024, this text provides information on Miscellaneous in Governmental related to Governmental. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.
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