Therefore, in 1933, unsatisfied with the Emergency Banking Act, they sought further reform. Their theory was that if you separate a banks commercial banking activities from the investment banking activities, the bank would be forced to be more conservative with its overall activities. Then with the banks in check, attention was turned to the millions of Americans who had lost all of their life savings during the crash. What made the most sense was something called the Federal Deposit Insurance Act, the FDIC. The theory was that in efforts to avoid the runs on banks, the insurance system would tell depositors that the federal government, through the FDIC, would reimburse up to a certain amount of money lost money during the crisis. This fund would be built up by using small taxes. However this was not the first time a system of this nature had been attempted, something FDR was aware of and unhappy with. All efforts to create a state level FDIC had failed in the past due to poor management, underfunding, and rampant corruption. The Glass-Steagall Act, under the auspices of the FDIC, initially sought to cap the reimbursements at $1000. However, Arthur Vanderburg, a senator from Michigan, felt as if the $1000 was too low, with many people losing much more than that. Then began a serious of back and forths, with one side calling for $1000 to be the list and the other $2500. Ultimately, FDR felt that $2500 was too high, too much liability on this corporation. Although this did not happen over night, they eventually reached a deal that created two parts to the Act. The preliminary part, stipulated that there would be a temporary release of funds on January 1st 1934 with the cap set at $1000. The second part of the plan was set to kick off on July 1st 1934, with the $2500 set as the ceiling. This was necessary because the white house still had to figure out how all of this would work. The temporary plan was put in to assure the people, the very creation of the FDIC, and the backing by FDR of the Glass-Steagall Act is what shows Americans that the banking system will survive and hopefully thrive. Ultimately, this led to the end of the bank runs that crippled the economy, the panic seemed to stop overnight. The federal system, with FDR at the helm, superimposed on the top, takes the press