Emergency Banking Act Law and Legal Definition
The Emergency Banking Act is a U.S. Congress Act passed in the year 1933. The object of the act was to execute the plan that will close down insolvent banks, reorganize and reopen those banks strong enough to survive.
The Act empowers the President to declare a national emergency and to have absolute control over the national finances and foreign exchange.
The Act makes any banking business illegal when done during emergency. The Act empowers the comptroller of currency to take complete control of, and operate banks in the U.S.