Why did banks fail during the Great Depression?

1 Answer
Sim W.
Apr 10, 2017

They failed because of the stock market crash

Explanation:

After the Black Thursday, many people rushed to the banks to withdraw their savings, it led to massive bank failures. People had borrowed money to be able to purchase shares and they were henceforth unable to pay back.

Panic was such a crucial factor in the Great Depression that Franklin Delano Roosevelt famously said " The only thing we have to fear is...fear itself" in his inauguration adress.

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