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African American Bank Failure

Satisfactory Essays
During Reconstruction, Congress endorsed the Freedman’s Savings and Trust Company in order to help African Americans adjust freedom. Nineteenth century newspapers informed and encouraged African Americans to deposit their money into this bank. Newspapers deceived customers into thinking that the bank was a safe and secure institution because it did not publish that the bank was failing until it closed. This failure shocked most depositors and led them to distrust the banking industry. Perhaps if the government made the necessary changes to ensure the safety and security of the banking industry at this time, they could have prevented future economic instability and panic.
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