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The first bank of the united states was chartered in 1791 by congress and signed by George Washington who believed it was time to make a standard currency. The bank collected fees and made payments for the federal government. State banks opposed the bank because they believed it gave too much power to the federal government.
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The second bank of the United states got its charter five years after the first bank failed. It didn't regulate state or other banks. While the state banks printed their money the federal didn't until the Civil war. Eventually went bankrupt in 1841.
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The United States was very deep in debt prior to the war, to help pay off that debt the government passed the Legal tenders act in 1862. This act allowed the federal government to print money also known as greenbacks, and begin to sell bonds.
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Created A system of national banks and constant currency. Made it so banks could have state or national charter also known as dual charter.
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This act created a central bank that was in charge of monetary policies.
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After the Great depression only stable banks were allowed to reopen. It separated commercial and investment banking and created FDIC.
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This act was passed by congress and signed by FDR in 1933. Prohibited commercial banks from engaging in the investment business.
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The recession during this time caused an increase in bank failures.
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After congress allowed banks to make more high risk loans and investments the banks failed and the federal government was forced to reimburse investors. Led the FDIC to take over S&L.
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This act allowed commercial banks, investment banks, securities firms to consolidate their money.
