Reconstruction Finance Corporation - RFC


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.

BREAKING DOWN '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.

  1. Stock Market Crash Of 1929

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  3. Securities Act Of 1933

    A federal piece of legislation enacted as a result of the market ...
  4. Bailout

    A situation in which a business, individual or government offers ...
  5. Great Depression

    An economic recession that began on October 29, 1929, following ...
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    An economic theory stipulating that rises in public sector spending ...
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