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Bank of the US
The Bank of the US received a charter in 1791 from Congress; signed by President Washington. The bank of the US collected fees and made payments on behalf of the federal government. Because of the thoughts that this bank would give too much power to the national government, it was taken away, but state banks still remained. -
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Civics Bank Timeline
By Jennie Madden -
1816 Second Bank of the US
There was a second bank for the US and it was charterd in 1816. However, it failed because it didnt regulate state banks. The problem was State banks were issuing their own currency and their was no paper money being printed. -
Paper Money
During the Civil War, the Federal Government started to print paper money. This helped the United States bring order to their economy. -
1863 National Banking Act
Banks could duel bank which means they could have a state or federal charter. -
1913 Federal Reserve Act
Established economic stability through a central bank. This was essential as investors were worried about the safety of their deposits.
http://www.investopedia.com/terms/f/1913-federal-reserve-act.asp -
1930's Great Depression
Banks were collapsing and people were trying to get their money out as fast as possible causing riots. Banks were going bankrupt. FDR ordered a bank holiday and he said all banks should remain closed until they proved that they were financially stable. -
Glass-Steagall Banking Act,
The Glass-Steagall Banging Act established the Federal Deposit Insurance Corporation which means that they will ensure if the bank goes under the clients will still have their money. -
FDIC take over
Congress allows S&L banks to make high risk loans and investments, but the investments went bad and banks started to fail. Due to the FDIC, the federal government had to give the investors their money back. They had a debt of $200 billion. That is when the FDIC took over S&L. -
1999 Gramm-Leach-Bliley Act
This act allowed banks to have more control over insurances, banking, and securities. However, the cons were that their is less competition, may lead to a reduction of privacy, and a universal bank.