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After President Washington appointed Hamilton as Secretary of Treasury in 1789, Alexander Hamilton proposed a national bank that would create a single currency for the entire nation, monitor other banks throughout the country, and manage the federal government's funds.
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Congress set up the Bank of the U.S with a 20 year charter with the following purposes; to hold the money that the government collected in taxes, to help the government carry out its powers to tax, borrow money in public interest, and regulate interstate and foreign commerc, to issue representative money in the form of bank notes, which were backed by gold and siler, and to ensure that state-chartered banks held sufficient gold and silver to exhange for bank notes should the demand rise.
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With the financial chaos of that day, Congress chartered the 2nd Bank of the U.S with a 20 year charter. Built to rebuild the public's confidence in a central bank.
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State-chartered banks were triggered and trippled in numbers by the fall of the Second Bank. Common problems from a large number of banks and currencies were Wildcat Banks, fraud, various currencies, and bank runs and panics.
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A type of paper money that was issued during the American Civil War and they were the first type of paper money.
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Established a system of National Banks for Banks.
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Created the United States' banking system.
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A monetary system in which paper money and coins are equal to their value of a certain amound of gold setting a definite value for the dollar and making sure the government could issue currency only if it had gold in the trasury to back the notes.
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Banks lacked adequate reserves so many banks had to stop exchanging gold for paper money and several long-standing New York banks failed and many people ost their jobs because businesses did not have access to money for investing in future projects.
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The Fed served as the nation's first true central bank, or bank that can lend to other banks in time of need. Creating member banks, the Federal Reserve Board, short-term loans, and Federal Reserve notes.
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After the Wall Street crash, the country was in an economic downturn. Banks were closing, jobs were scarce, overoptimistic loans were common, and industries were failing.
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The FDIC insures customer deposits if a bank fails.
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This Act paved the way for banks to sell financial assests such as stocks and bonds whileestablishing new privacy rules for customer data.
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Deregulation was one cause of the S&L crisis along with fraud, high interest rates, and inadequate capital.
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This Act essentially abolished the independence of the savings and oan industry and transferred insurance responsibilities to the FDIC.
