Bank of United States Failure

About Bank of United States Failure

The Bank of United States failed on December 11, 1930, one of the largest bank failures in American history. Despite its name, it was a private bank serving immigrant communities in New York. The failure triggered widespread bank runs. Depositors lost over 200 million. The bank had invested heavily in declining real estate. The failure is often seen as the moment the Great Depression deepened from recession to catastrophe. Senator Carter Glass blamed the failure on the banks involvement in securities. The Bank of United States failure became an argument for deposit insurance, leading to the creation of the FDIC in 1933.