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Sun 16 Sep, 2007 06:50 pm
1) In this 1946 movie classic, depositors who fear the impending failure of the Bailey Building and Loan Association, start withdrawing their deposits.
However, the FDIC started insuring bank deposits in 1933, so why would fear about the Building and Loan's solvency cause a run?
(I am aware that there were numerous bank runs before the formation of the FDIC.)
2) The Bailey Building and Loan Association is presented as a family business (of the Bailey family). However, I thought such institutions (generally known as savings and loans) at that time were mutually owned.
Don't forget, the film takes place over a number of years.
If I remember correctly, the run on the bank occurs when George first gets married and he uses his honeymoon money to save the bank.
And Savings and Loans were insured under a different program. The FSLIC which went belly up in the late 80s early 90s and was combined with the FDIC.
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