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1791: Bank of the U.S.
The First Bank of the U.S. was created to to serve as a place of storage for federal funds and as the government's fiscal agent. It went away however, because the states thought it gave too much power to the Federal Government. The bank was proposed by President Alexander Hamilton. -
1816: Second Bank of the U.S.
The Second Bank of the U.S. was created by President Andrew Jackson, in hopes of fixing the reparations from the War of 1812. However, it too, failed because it didn't regulate state banks or charter any other bank. -
Civil War (printing currency)
The Civil War created a coin shortage, so the first official paper currency of the United States was created. They were called Demand Notes and came in $5, $10, and $20 increments printed in 1861. -
1863: National Banking Act
This act enabled banks to be allowed a state of federal charter (duel banking). -
1913: Federal Reserve Act
This was the act that established the first national bank of the United States, the "Fed." It became the central ban of the US, and created a national currency system. -
1930's: Great Depression Bank Failures
The Great Depression of the 1930's caused many banks to collapse. Because of many people having anxiety about leaving their money in failing banks, "Bank Runs" occurred, like shown in my picture. People were rushing to the banks to get all of their money, before it was gone.President FDR even declared a "Bank Holiday", where all banks were forced to close, except that of which were stable enough to reopen. -
1933: Glass-Steagall Banking Act
This act separated investment banking from commercial banking, and established the FDIC, "Federal Deposit Insurance Corporation".It was signed into law in 1933 by President FDR. This act, and the FDIC ensures that we have money, even if the bank goes under. -
1970's: (regarding banking)
Congress relaxes restrictions on banks. Interest rates increased, and there was a great inflation. -
1982: (regarding banking)
Congress allows S&L banks to make high risk loans and investments. Investments went up, and banks failed.Federal governments had to give investors their money back. This got the Federal government in the hole $200 Billion. The FDIC then took over the S&L. This was the worst economic turn down since the Great Depression. -
1999: Gramm-Leach-Bliley Act
This allows banks to have more control over banking, insurance and securities. The cons however, are there are less regulations, so a universal bank may be formed, which may lead to more sharing of information (reduction of privacy).
