Emergency Banking act of 1933 gave federal government power to recognize and strengthen banks
The act allowed a plan that would close down insolvent banks and reorganize and reopen those banks strong enough to survive.
Only those banks with enough funds to meet depositers demands could open again.
It fixed the banking crisis because people started trusting the banks again and deposited there into the bank which helped the economy
Franklin Roosevelt shut down banks for a bit so federal inspectors from the treasury department could declare whether banks had the capacity to operate again. If the bank was declared stable they...