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By March 1933, the banking system in the United States was in a state of crisis due to the Great Depression. Many banks had failed or were on the verge of collapse, leading to widespread panic and bank runs, where depositors rushed to withdraw their savings. In response, President Franklin D. Roosevelt declared a nationwide bank holiday, temporarily closing all banks to stabilize the system and prevent further bank failures. This situation prompted significant reforms in the banking industry in the years that followed.

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