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The nation's leaders started their debate on banking
It occured during the 1780s and 1790s and was part of a larger political debate about the role of government in the young country. -
Hamilton proposed a national bank
He did this when President Washington appointed him as Secretary of the Treasury in 1789. It could issue a single currency for the entire nation, manage the federal government's funds, and monitor other banks throughout the country. -
First bank was established
located in Phillidelphia and was called the Bank of the United States -
The Bank's charter ran out
After the Bank's charter expired, the state banks began issuing bank notes that they could not back with specie. -
Congress chartered the Second Bank of the United States
The Second Bank was limited to a 20 year charter. It slowly managed to rebuild the public's confidence in a national banking system. -
The Supreme Court ruled a national bank constitutional
The same groups who had opposed the first bank also opposed the Second Bank. -
Nicholas Biddle became the Second Bank's president
He was responsible for restoring stablitliy. -
Veto of the renewal of the Bank
President Jackson's extreme distrust of the Second Bank led him to veto the renewal of the Bank. -
Free Banking or "Wildcat" Era
This period was between 1837 and 1863. This era was when state-chartered banks dominated after the fall of the Second Bank. -
Greenbacks were issued
The United States Treasury issued its first paper currency since the Continental. The official name was "demand notes" but they were also called "greenbacks" because of the green ink. -
State banks could no longer issue notes
this was because of the end of civil war -
First time lock installed
worked up to 96 hours or 4 days -
Panic of 1907
This crisis leads to the government making plans to reinstate a central bank. -
President Wilson signs the Federal Reserve Act
The federal reserve act established the Federal Reserve System which served as the nation's first true central bank. -
Banks loaned large sums of money to many high-risk businesses
Many of these businesses proved unable to pay back their loans. -
Stock market crashed
This resulted in widespread bank runs as nervous depositors rushed to withdraw their money. The combination of unpaid loans and bank runs resulted in the failureof thousands of banks across the country. -
Banks were closely regulated
This lasted through the 1960s. Restrictions included the interest rates banks could pay depositors and the rates that banks could charge consumers for loans. Banks could also lend money only to customers who had a history of paying back loans on time. -
Congress passed the Federal Deposit Insurance Corporation
The FDIC insures customer deposits if a bank fails. It covered losses up to $25,000 but now the amount insured has risen to $100,000. -
Roosevelt declared a national "bank holiday"
On this day all the nation's banks closed. The "bank holiday" was not a time of festivites, as the name implies, but a desperate last resort to restore trust in the nation's finanial system. -
Ferma was invented to read numbers on checks easier
4 million checks read everyday -
People started using credit cards
850,000 ATM's used around the world -
Savings and Loan Crisis
During the 1970s, savings and loans had made long-term loans at low rates. By the 1980s, interest rates had skyrocketed. This meant that savings and loans had to pay out high interest rates to thier depositors. -
Banks were eager for relief from federal regulation
In the late 1970s and 1980s, Congress passed laws to deregulate several industries. -
Congress passed the Financial Institutions Reform, Recovery, and Enforcement Act.
FIRREA essentially abolished the independence of savings and loans industry and transferred insurance responsibilities to the FDIC. -
Congress repealed the 1933 Glass-Steagall Act
This action paved the way for banks to sell financial assets such as stocks and bonds while establishing new privacy rules for customer data. -
The current series of 20 dollar bills is released
There is no oval around Andrew Jackson's portrait and the background has images of eagles.The back has a picture of the White House and 90 faint "20"s are scattered on the back. -
Failure of Washington Mutual
The FDIC was able to broker a deal where JP Morgan Chase bought the assets of Washington Mutual for $1.9 billion. -
Highest number of bank fails since 1992
In 2010 there were 157 bank fails. -
The Federal Housing Finance Agency
They announced that the FHLBanks had satisfied their obligation to make payments related to the Resolution Funding Corporation bonds. -
The FHL Banks Office of Finance
They published the third quarter combined financial report. The FHLBanks recorded net income of $660 million.
