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1791 Bank of the US
The first bank of the United states was established in February, 1971. The purpose of this bank was to develop a place to hold federal funds, also serving as the government's financial agent. The first bank was doing well, but people said that it was disrupting the development of the economy, so about 20 years later a second bank was made. -
1791 Bank of the US
The first bank of the US was chartered to make a place for the federal government to store their money and to be the government financial unit. The bank did well, but it was said that it was restricting economical development. The bank was never rechartered and went out of business. This bank was followed by the second. -
1816 Second Bank of the US
The Second Bank of the US was charted in 1816 and established in Pennsylvania. The purpose of this bank was to attempt and resolve the debt the country was left in after the War of 1812, along with the inflation caused by the overproduction of notes. This bank was charted for 20 years, after which they attempted to be re-approved, and failed. -
Civil War (printing currency)
Before the federal government was printing money, it was left up to the states. This caused for an unregulated and inconsistent currency. It wasn’t until the Civil War, which caused a shortage of coins, that the federal government decided to start regulating the currency production. This money was known as greenbacks. -
1863 National Banking Act
Was implemented after the crisis the American Civil War brought. Wars are expensive, and during that time there was issues with the currency, so the Senate decided now was time to get the banking under control. The National Banking Act was put into place to attempt to stabilize the currency dilemma along with the rest of the money issues in America. This did not completely resolve the issues that it was set out to take, so later in 1913 a central government bank was started. -
1913 Federal Reserve Act
Was put into place in 1913. Purpose was to make a more reliable and stable form of banking. The Fed acts as a central banking system for the United States. 7 permanent governors are chosen by the president and approved by the senate.The rest of the committee is made up of 5 representatives from district banks. Duties of the Fed are to watch over commercial banks, enforce consumer borrowing laws, and play the role of government bank, the main control the Fed has is over interest rates. -
1930’s Great Depression (regarding banking)
After Americans became fearful and sold their shares, the United States fell into a great. The Great Depression resulted in many people being out of a job and a bank. After thousands of banks had failed, but the new President Roosevelt had a plan: a bank holiday. This meant all the banks across the US had to close, and were only allowed to reopen if they were able to show they were financially stable. -
Glass-Steagall Banking Act
Resulting after the bank failures of the Great Depression, said banks could no longer take depositor’s money and use it for risky investments, making banking safer. This started the FDIC. If the bank does not end up giving you the money they owe you, the FDIC will step in and take care of it. This gives bank customers the security of knowing their money is going to be there. Along with the protection of customers, this act made all of the different types of banking separate. -
1970’s (regarding banking)
In the 1970’s Congress starts to loosen up on banking. This is after the complaints of banks saying they’re loosing customers because they are unable to offer different services prevented by the Glass-Steagall Act. Congress started to let them offer more services. -
1982 (regarding banking)
Unlike the 1970’s, saving and loans are no longer what is being sought after and every bank offered checking. Congress didn’t regulate the types of risks savings and loan banks made, resulting in the failure of many banks, along with the federal government having to reimburse $200 billion loss. The FDIC took over savings and loans. Independent savings and loan banks were abolished along with the board that was in charge of them. -
1999 Gramm-Leach-Bliley Act
When the Glass-Steagall Act was put into place, it implemented many limitations on commercial banks. The Gramm-Leach-Bliley Act removed some of those limitations that were previously enforced. This gave commercial banks more freedom. They are now able to have a greater amount of control over insurance and security, along with the ability to be a commercial bank along with an investment bank.
