Final answer:
The Glass-Steagall Banking Act established the FDIC for financial sector regulation, to insure bank deposits and prohibit commercial banks from engaging in investment banking, to rebuild public confidence after the Great Depression.
Step-by-step explanation:
The Glass-Steagall Banking Act which included the creation of the Federal Deposit Insurance Corporation (FDIC), is primarily concerned with financial sector regulation. Passed in June 1933, during President Franklin D. Roosevelt's administration, the act prohibited commercial banks from engaging in investment banking, curtailing the practice of banks speculating in the stock market with depositor's funds. It aimed to restore confidence in the banking system after the Great Depression. Furthermore, the FDIC was established to insure individual bank deposits, initially covering up to $2,500 and later increased, instilling greater public trust in the financial system. The Glass-Steagall Act's conflict of interest provisions, which prevented single companies from offering commercial banking, investment banking, and insurance services were repealed in 1999, a change some argue contributed to the 2008 Financial Crisis.