Reconstruction Finance Corporation

The Reconstruction Finance Corporation ( RFC) was an independent government agency in the United States, which was created in 1932 during the presidency of Herbert C. Hoover. Their task was to provide financial support to banks and other private companies during the time of the Great Depression.

The activity of the RFC consisted primarily of the granting of loans, for which she was equipped with 500 million U.S. dollars capital. In addition, she was given the opportunity to borrow an additional 1.5 billion U.S. dollars as necessary; This amount was later increased to 10.5 billion U.S. dollars. Although for the support of the railroad companies Railroad Credit Corporation was responsible, the RFC also awarded loans to railway undertakings, as many banks had invested in securities of that company and a collapse of the railway companies so that the banks would have endangered. In addition, they bought after the adoption of the Emergency Banking Act in 1933 to support the banks their preference shares and bonds. Mid-1930s had the RFC shares in 6,000 American banks.

The Reconstruction Finance Corporation, whose activities were expanded under President Franklin D. Roosevelt, became the most important institution in the context of government policies of the New Deal. As director of the RFC acted from 1933 to 1939 Jesse H. Jones, who was subsequently to 1945 trade ministers of the United States. During the Second World War, the sum of the assigned by the RFC loans per year increased significantly and reached in 1943 with six billion dollars to their maximum value. The RFC was dissolved in 1953 by an Act of Congress Act, their business responsibilities were transferred with effect from 1 June 1954 the Ministry of Finance.