United states bank philadelphia 1875

Bank Operations

By Chelsi12

  • Bank of the US

    Bank of the US
    The Bank of the US received a charter in 1791 from Congress; signed by President Washington.This bank collected fees and made payments on behalf of the federal government. The bank went away because state banks opposed it, they thought it gave too much power to national government.

  • Second Bank of the US

    Second Bank of the US
    Second Bank of the US was chartered in 1816 but failed because it didn’t regulate state banks or charter any other bank. State banks were issuing their own currency. The federal government didn’t print paper currency until the Civil War

  • Civil War

    Civil War
    They printed paper money known as greenbacks. Each bank could print its own form of paper money; paper money had value because it was backed by gold. The money printed by the Government after the Legal Tender Act was not backed by gold because the Government did not have that much gold at that time. The “greenbacks” could be used to pay taxes and buy items from stores.

  • National Banking Act

    National Banking Act
    Banks could have a state or federal charter (duel banking)

  • Federal Reserve Act

    Federal Reserve Act
    National bank; intended to create a type of economic stability through the introduction of the Central Bank, which would be in charge of monetary policy, into the United States.

  • Great Depressiom

    Great Depressiom
    Great Depression caused banks to collapse. FDR declared a “bank holiday” where banks closed. He only allowed to reopen if they proved they were financially stable.

  • Glass-Steagall Banking Act

    Glass-Steagall Banking Act
    Established the Federal Deposit Insurance Corporation and ensures that if a bank goes under, you still have your money.

  • Banking

    Banking
    Congress relaxes restrictions on banks

  • Banking

    Banking
    Congress allows S&L banks to make high risk loans and investments but the investments went bad and banks failed.
    Federal government had to give investors their money back.
    Federal government debt: $200 billion. The FDIC took over the S&L.

  • Gramm-Leach-Bliley Act

    Gramm-Leach-Bliley Act
    Allows banks to have more control over banking, insurance and securities. They have less competition, may form a universal bank; may lead to more sharing of information (reduction of privacy)