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First Bank in the U.S.!
-Nations first central bank
-It helps to unify the country's economy
-8 Branches
-The 20-year charter was not renewed -
Second Bank!
-Finances debt from war of 1812
-Pres. Biddle and Jackson at odds with starting the second bank
-Charter is still not renewed
-Central banking still not renewed -
Banking panic
-This raised issues for the need for a central bank -
Federal Reserve System established
-Third central bank
-Federal reserve act passed -
McFadden Act
-It has a 20-year charter, but this act gives Fed permanence -
Great Depression
-leads banks and businesses to fail
-laws passed: Glass-Steagall Act, FDIC, and SEC
-These laws helped to restore people's faith in banking and stocks again -
Employment Act
-This defined goals of the economic policy -
Treasury-Fed accord
-It acknowledged Fed's independence for the monetary policy -
Consumer Protection Laws
-Became popular in late 60's
-70's had high enployment and high inflation
-Truth in Lending Act in 1968
-The community reinvestment act in 1977 -
"Gold Window"
President Nixon suspended gold payments of U.S. dollars. This closing of the “gold window” effectively ended all ties between the U.S. dollar and either gold or silver. -
Humphrey-Hawkins Act
-Twice a year Fed has to submit a report to congress
