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. Bailout

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

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

    A company whose voting stock is more than 50% controlled by another ...
  5. Securities Act Of 1933

    A federal piece of legislation enacted as a result of the market ...
  6. Asset Management and Disposition ...

    A type of contract between the Federal Deposit Insurance Corporation ...
Related Articles
  1. Top 6 U.S. Government Financial Bailouts
    Insurance

    Top 6 U.S. Government Financial Bailouts

  2. A Review Of Past Recessions
    Insurance

    A Review Of Past Recessions

  3. The History Of The FDIC
    Retirement

    The History Of The FDIC

  4. Recession And Depression: They Aren't ...
    Personal Finance

    Recession And Depression: They Aren't ...

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center