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Bank of the U.S.
The Bank of the US received a charter in 1791 from Congress; signed by President WashingtonThis "bank" collected fees and made payments on behalf of the federal government. "Bank" went away because state banks opposed it; they believed it gave to much power to the national government -
Second Bank of the U.S.
Second Bank of the US was chartered in 1816.This bank failed because it didn’t regulate state banks or charter any other bank. State banks were issuing their own currency and federal government didn’t print paper currency until the Civil War. -
National Banking Act
Banks could have a state or federal charter (duel banking) established a system of nationally chartered banks and required the currency issued by them to be backed by government securities. -
Civil War
To pay for the war, the Confederate government issued 70 different paper currencies. Nothing could be traded for the paper money, not even gold or silver. They make up to 1.5 billion dollars worth of this paper money which was unheard of at the time. So thus making things even more confusing. State governments issued their own currencies; as did banks, insurance companies, and businesses. -
Federal Reserve Act
intended to establish a form of economic stability through the introduction of the Central Bank, which would be in charge of monetary policy, into the United States. The Federal Reserve Act is perhaps one of the most influential laws concerning the U.S. financial system. -
Great Depression
caused banks to collapse, FDR declared a “bank holiday” where banks closed. Only allowed them to reopen if they proved they were financially stable... which they weren't for quite sometime -
Glass-Stegall Banking Act
Established the Federal Deposit Insurance Corporation anf ensured that if a bank goes under, you still have your money! -
1970's banking
Congress relaxes restrictions on banks -
Regarding Banking of 1982
Congress allows S&L banks to make high risk loans and investments, but they went really bad. Causing banks to fail with a debt of $200 billion and the federal government had to give investors their money back. Therefore the FDIC took over the S&L. -
Gramm Leach Bliley Act
Allows banks to have more control over banking, insurance and securities
But had consequences of less competitio and may lead to more sharing of information (reducing privacy)
