Federalists want a national bank, while Antifederalists think a national bank takes away from states' rights.
1st Bank in the USA
Alexander Hamilton proposes a national bank to Congress in 1790 to issue paper currency (banknotes), provide a safe haven for public funds, offer a place for commercial transactions, and collect federal taxes (to be the fiscal agent). Washington signs the proposal in 1791 after much debate. (video)
First bank expired
Congress forgot to renew the charter for the first national bank, so it expired.
Second Bank of the US
The U.S. experienced severe inflation and had difficulty in financing military operations after the War of 1812, so a new bank was chartered to loan money to the government.
Andrew Jackson believed one national bank was the cause of inflation, so he vetoed the Second National Bank's charter and created his "pet banks" or "state banks" which he placed all over the country.
Panic of 1837
Profits, prices and wages went down while unemployment went up. Pessimism abounded during the time.Several planters had spent much of their money in advance, leading to the complete bankruptcy of many planters.
Wells Fargo begins
Wells and Fargo created a business in the midst of the 1848 Gold Rush to provide the fastest possible transportation of gold dust, important documents and other valuables. It also served as a bank--buying gold dust, selling paper currency and providing loans to help fuel the growing economy. (video)
National Banking Act
established a system of national banks for banks, and created the United States National Banking System. They encouraged development of a national currency backed by bank holdings of U.S. Treasury securities
Federal Government backs currency
Before the Civil War, there were over 8,000 different pieces of currency (combined from state-specific currency and Union and Confederacy currency). This diversity caused much dispute because they were not all accepted by everyone. After the war, the federal government made it illegal to print seperate currency from the currency the federal government now would print and back. (video)
embraced the gold standard, and demonetized silver
San Francisco fire and earthquake
San Fracisco, a booming city from the recent gold rush, was destroyed by a devastating day involving both a fire and an earthquake. Most banks trusted their safes and left the money in the city. One banker, Amadeo Giannini, took his money out of the rubble and right away began to loan money in order to rebuild the city. (video)
The Panic of 1907
1907 Bankers' Panic or Knickerbocker Crisis; Primary causes of the run include a retraction of market liquidity by a number of New York City banks and a loss of confidence among depositors, exacerbated by unregulated side bets at bucket shops
to investigate the so-called "money trust", a community of Wall Street bankers and financiers that exerted powerful control over the nation's finances; authorized to form a subcommittee of the House Committee on Banking and Currency
Federal Reserve Act
the central banking system of the United States of America, and granted it the legal authority to issue Federal Reserve Notes; ratified by Woodrow Wilson
The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. First used publically in the 1920s, credit cards allow the cardholder to pay for goods and services based on the holder's promise to pay for them. (video)
sought to give national banks competitive equality with state-chartered banks by letting national banks branch to the extent permitted by state law
Stockmarket Crash and Great Depression
Speculation and loaning, among other economic aspects caused the stock market to crash in 1929. Businesses were unable to repay banks and people decided to keep their money at home caused banks to close, resulting in the Great Depression. (video)
The savior banker, Giannini, renamed the Bank of Italy to the Bank of America when he merged with Bank of America, Los Angeles. Giannini, running his bank seperate from the US government, first envisioned bank branches. (video)
Part of Franklin Roosevelt's New Deal, the Glass-Steagall Act made banks choose whether to be a commercial or an investment bank: they could not be both. (video)
Federal Credit Union Act
to make credit available and promote thrift through a national system of nonprofit, cooperative credit unions
New York Banking Law
Banks could open if: 1.all notes the bank issued had to be backed by state bonds deposited at the state auditor's office and meet certain capital requirements; 2.Any bond security provision was to be deposited with the state on a dollar-for-dollar basis as a condition for the issuance of banknotes
Electronic Recording Machine, Accounting: a computer development project run at SRI International under contract to Bank of America in order to automate banking bookkeeping. (video)
a computerized telecommunications device that enables people to perform financial transactions without the need for a bank teller. The first ATM was put into use in 1959 in the Kingsdale Shopping Center in Upper Arlington, Ohio as an automated deposit device.
The Gramm-Leach-Bliley Act repealed the Glass–Steagall Act of 1933 and removed the separation that previously existed between Wall Street investment banks and depository banks. Some political commentators have claimed that this repeal directly contributed to the severity of the financial crisis of 2007–2010
US financial crisis
It was triggered by a liquidity shortfall in the United States banking system and has resulted in the collapse of large banks, the bailout of banks by national governments, and stock market downturn around the world. The housing market has also suffered, resulting in evictions and foreclosures. It contributed to the failure of businesses, decline in consumerism.
Secure and Fair Enforcement for Mortgage Licensing Act of 2008: intended to provide uniform licensing standards nationwide, as these licensing standards had been non-uniform from state to state for the past 20+ years.
Dodd–Frank Wall Street Reform and Consumer Protection Act
A new Council will collect data to assess risks to the financial system, monitor the marketplace, make general regulatory recommendations, and may also dictate the Federal Reserve to assume an oversight position of certain institutions considered to pose a risk. The Council advises Congress regarding domestic and international regulation proposals and developments.
David H. Hehman, President and CEO of the FHLBank, announced his retirement on January 19, 2012, effective June 1, 2012. Mr. Hehman joined the FHLBank in 1977
and has been CEO since 2003.