Re: It's A Wonderful Life
gollum wrote:In the 1946 movie It's A Wonderful Life depositors cause a run on the Bailey Savings and Loan.
However, the Federal Depositors Insurance Corporation started insuring bank and S&L deposits in 1933.
Therefore, since the deposits of the Bailey Savings and Loan would have been insured, why would a run have occurred?
First of all, the FDIC didn't regulate savings and loans. Instead, the FSLIC did. It was established in 1934.
Secondly, that part of the film clearly takes place in the past, before the events of Christmas Eve 1946. The run on the Bailey B&L could very well have occurred before 1934.
Finally, membership in the FSLIC was voluntary. No S&L was required to belong to the FSLIC. Perhaps the Bailey B&L just didn't belong to the FSLIC, and so its deposits were not covered.
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