Reconstruction Finance Corporation - RFC

AAA

DEFINITION of 'Reconstruction Finance Corporation - RFC'

An agency created by the the U.S. government to aid the troubled banking sector in the years following the stock market crash of 1929. The Reconstruction Finance Corporation (RFC) was approved by Congress to begin business in 1932 with a mandate to make emergency loans to banks that were in danger of failing.

INVESTOPEDIA EXPLAINS 'Reconstruction Finance Corporation - RFC'

Although the RFC was intended to only stay in operation for 10 years following its inception, the agency lasted until 1957. During that time the RFC expanded its authority to include making loans to farmers, railroads, companies and even created eight subsidiaries to aid in the wartime effort during World War II.

RELATED TERMS
  1. Stock Market Crash Of 1929

    A severe downturn in equity prices that occurred in October of ...
  2. Great Depression

    An economic recession that began on October 29, 1929, following ...
  3. Subsidiary

    A company whose voting stock is more than 50% controlled by another ...
  4. Bailout

    A situation in which a business, individual or government offers ...
  5. Securities Act Of 1933

    A federal piece of legislation enacted as a result of the market ...
  6. Fractal Markets Hypothesis (FMH)

    An alternative investment theory to Efficient Market Hypothesis ...
Related Articles
  1. Insurance

    Top 6 U.S. Government Financial Bailouts

    U.S. bailouts date all the way back to 1792. Learn how the biggest ones affected the economy.
  2. Insurance

    A Review Of Past Recessions

    Here we look at the biggest economic declines in the U.S. since the Great Depression.
  3. Retirement

    The History Of The FDIC

    Find out why this corporation was developed and how it protects depositors from bank failure.
  4. Personal Finance

    The Crash Of 1929 - Could It Happen Again?

    Learn about the series of events that triggered the Great Depression.
  5. Economics

    What Caused The Great Depression?

    Learn how government actions may have contributed to this major economic downturn.
  6. Personal Finance

    Recession And Depression: They Aren't So Bad

    Financial downturns are part of the economic cycle and may have important long-term benefits.
  7. Economics

    How successful is fiscal policy in guiding the national economy?

    See why it is difficult to evaluate the impact of fiscal policy on the national economy and how fiscal tools have failed to live up to expectations.
  8. Economics

    What is the role of deficit spending in fiscal policy?

    Read about the role deficit spending can play in a government's fiscal policy, and learn why economists are torn about the efficacy of debt-related stimulus.
  9. Economics

    Who sets fiscal policy, the president or congress?

    Discover how fiscal policy is set in the United States, including how all three branches of government can affect a given policy proposal.
  10. Economics

    How do debt issues affect governments' abilities to run fiscal deficits?

    Read about whether or not debt issues affect the federal government's ability to run fiscal deficits, and find out what those impacts are.

You May Also Like

Hot Definitions
  1. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  2. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  3. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  4. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  5. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  6. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
Trading Center