Which law ensures the safety of conservatively managed deposits in banks?

The FDIC Act is crucial for ensuring the safety of conservatively managed deposits in banks because it established the Federal Deposit Insurance Corporation (FDIC). This corporation insures deposits made by individuals and businesses in member banks. By providing insurance for deposits up to a certain limit (currently $250,000 per depositor, per insured bank), the FDIC protects depositors against bank failures, thereby promoting public confidence in the banking system. The existence of deposit insurance encourages individuals to keep their money in banks rather than withdrawing it during times of financial instability.

The other legislative acts listed serve different purposes. The Sarbanes-Oxley Act primarily focuses on corporate governance and financial disclosures for publicly traded companies, aiming to protect investors from fraudulent accounting practices. The Dodd-Frank Act was enacted to reform financial regulation after the 2008 financial crisis, enhancing oversight and stability in the financial system, but it is not specifically aimed at protecting deposits. The Truth in Lending Act is designed to promote informed use of consumer credit by requiring clear disclosure of terms and costs associated with loans, but it does not address deposit safety directly.