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Bank of the US
The First Bank of the United States was needed to handle the huge war debt and to make a standard currency form. The First Bank's charter was drafted in 1791 by the Congress and signed by George Washington. -
Second Bank of the US
The Second Bank of the United States was chartered in 1816, five years after the First Bank of the United States lost its charter. The Second Bank had its charter for 20 years, didn't get its charter renewed, then went bankrupt in 1841. -
Civil War currency problems
Prior to the Civil War, the US debt was $64.8 million. Once the war began, the financial cost of the war was about $5.2 billion. To pay off the war, the Legal Tender Act of 1862 was passed. This let the government print paper money known as greenbacks and sell $500 million in bonds. -
National Banking Act
The National Banking Act created National Banks that could issue Greenbacks. -
Federal Reserve Act
Introduced the Central Bank, which was in charge of monetary policy. -
Great Depression (stock market crashed)
This day on Wall Street, known as Black Tuesday, resulted in millions of dollars being lost. The Great Depression was the roughest and longest-lasting economic downfall ever. -
Glass-Steagall Banking Act
This was passed by Congress in 1933 and signed by FDR. It prohibits commercial banks from engaging in the investment business. -
Recession causes increase in bank failures
Most severe recession since WWII. -
Savings and Loan Crisis
Too much money in loans was given out, resulting in massive debt of savings and loans banks. -
Gramm-Leach-Bliley Act
This act, signed by President Bill Clinton, allowed commercial banks, investment banks, securities firms, and insurance companies to consolidate.