In January 1932 Congress approved the formation of an indepe…

In January 1932 Congress approved the formation of an independent government agency called the Reconstruction Finance Corporation (RFC). The RFC was funded by the U.S. Treasury and was authorized to make loans to banks, railroads, life insurance companies, and other large businesses devastated by the Great Depression. President Herbert Hoover believed that funds disbursed through the RFC would eventually benefit the average citizen through job growth, higher wages, and the protection of bank accounts and insurance policies. The Reconstruction Finance Corporation is similar to later New Deal legislation in that both —