What was the main function of the Reconstruction Finance Corporation established in 1932?

The Reconstruction Finance Corporation (RFC), established in 1932 during the Great Depression, primarily aimed to stabilize key financial institutions that were struggling at the time. By offering loans to large businesses, insurance companies, and banks, the RFC sought to ensure the survival of these crucial economic entities, thereby preserving jobs and restoring public confidence in the financial system. This strategy was significant as it marked a shift in federal policy towards a more direct intervention in the economy, reflecting the urgent need to address the widespread economic collapse. The focus on larger institutions was intended to create a ripple effect that would lead to broader economic recovery, by stabilizing the sectors that had been deemed essential for overall economic health.