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President Washington signed it,
State banks opposed it, thought it gave too much power to the national gov't -
Was chartered in 1816 but began operations in 1817,
Failed because it didn't regulate state banks,
State banks issued their own currency,
Federal gov't didn't print currency until the civil war -
The first $1 state note was issued in New Jersey,
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Banks could have a state or federal charter(colliding banks)
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The National Bank
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Caused Banks to collapse, FDR declared a "bank holiday" where banks closed, They were only allowed to open if they could show that they were financially stable.
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Established the FDIC, Ensures that if the bank fails you will have your money
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Congress is not so strict on the banks
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Congress allowed S&L banks to make high risk loans and investments, Investments go bad, Banks failed, Had to pay people back their money, Creates a debt of $200 billion, The FDIC takes over
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Allows more banks to have more control over the banks and insurance, Could lead to sharing of personal information, May form a universal bank
