To prevent future bank runs and the resulting bank crashes thathad caused the rapid fall into depression following the StockMarket crash as investors rushed to banks to try to get theirsavings out (some to try to repay their margin loans to StockBrokers, some just to get money to live on).The new FDIC could close a bank that was having trouble before abank run began, preventing total loss of cash assets and try toreorganize the bank. If necessary the FDIC could pay off thecustomer's insured deposit accounts or force the sale of the failedbank to a more viable one (transferring the customer'saccounts).This was expected to help stabilize the economy of the US.