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First Bank of the United States
The First Bank of the United States received a charter in 1971 from Congress, which was signed by the president at the time: George Washington. It collected fees and made payments on behalf of the federal government. It was abolished because state banks felt it gave too much power to the national government. -
Second Bank of the United States
The Second Bank of the United States was chartered in 1816. Unfortunatly, it failed because it did not regulate state banks or charter any other bank. State banks were issuing their own currency at this time. -
Civil War Currency
The Federal government did not start printing paper currency until the Civil War. The Civil War led to the nationalization of a national currency, which we use today. -
National Banking Act
This gave banks the ability to have a state or federal charter; duel banking, Used during the Civil War to raise money for the fight against the Confederacy. -
Federal Reserve Act
Established a decentralized National Bank; signed by President Woodrow Wilson. -
Great Depression: Bank Holiday
The Great Depression caused banks to collapse. President Roosevelt declared a "bank holiday" where banks were forced to close and could only open again if they proved that they were financially stable in the hard times of the depression. -
FDIC Takeover
Congress allowed S&L banks to make high risk loans and investments. Unfortunatly for them, the investments went bad, banks failed, and the federal government had to give the investors their money back. The Federal Government was now in debt over $200 billion. It was then that the FDIC took over the S&L. -
Gramm-Leach-Bliley Act
Allowed banks to have more control over banking, insurance, and securities. Unfortunatly, it allowed less competition, may have formed a universal bank, and may have led to a reduction of privacy.
