why did so many banks fail at the onset of great depression

Question

anonymous · Answer

because people wanted there money so they could get through and the banks didn't have all there money.....

anonymous · Answer

Because banks invest the money you deposit into stocks. When the stock market fell before the depression, people freaked out. Everyone rushed to the banks to get all their money out before it was gone. So many people rushed the banks at one time getting all their money out that the banks went bankrupt and had to close down. Everyone who didn't get their money out the bank was broke. The money was completely gone. Even after we got out of the depression not everyone trusted the banks again.. And today since the stock market failed back then the government made up days called 'bank holidays' so that if this ever happened again the banks could close down until everything calmed down.