-
The Continental Congress approves the Bank of North America, and it opens in Philadelphia on January 4, 1782. It loans money to federal and state governments as well as to Philadelphia businesses.
https://hsp.org/sites/default/files/politics_-_article_about_bna_from_pmhb.pdf -
Bank of the United States is a central bank chartered in 1791 by the U.S. Congress at the urging of Alexander Hamilton and Thomas Jefferson. The government deposits tax money in the bank. The bank issues paper money to pay the government's bills.
https://www.britannica.com/topic/Bank-of-the-United-States -
Despite the Bank's help in developing the economy, Republicans oppose a national bank. Eventually, BUS runs out in 1811. Without a national bank, state banks must make loans and issue money.
http://www.mindcontagion.org/banking/hb1811.html -
By 1816, Republicans realize that they need a central bank to regulate the money supply. Thus, they created the second national bank.
https://www.federalreservehistory.org/essays/second_bank_of_the_us -
President Andrew Jackson saw the Bank as undemocratic and vetoed a bill to renew the charter four years early. He demands that federal money be deposited in state banks rather than the BUS.
https://www.history.com/this-day-in-history/andrew-jackson-shuts-down-second-bank-of-the-u-s -
On February 25, 1863, Congress approves the National Bank Act. This is meant to establish a national banking system, make federal war loans, and create a national currency.
-
With President Woodrow Wilson, Congress passes the Federal Reserve Act in 1913. The Act sets up a new system of federal banks. The Act also gives the government the power to raise or lower interest rates and control the money supply
-
The American economy begins to decline as consumer spending drops. On October 24,1929, the stock market bubble finally bursts, and investors sell off millions of shares in a panic. People started to withdraw their deposits from banks, and it created the Great Depression.
-
Roosevelt introduces further legislation with the Banking Act of June 16, 1933. This act separates commercial banking from investment banking. It also introduces federal deposit insurance and regulation of interest rates on deposits.
-
It occurred when banks sold too many mortgages because the home was falling and they couldn't price the value of the assets.
https://www.thebalance.com/subprime-mortgage-crisis-effect-and-timeline-3305745
