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Federalists won the first debate and in 1791,Congress established the Bank of the United States. The Bank functioned until 1811, when its charter ran out.
[Link text](http://www.slideshare.net/agorafinancial/a-history-of-central-banking-in-the-united-states0 -
state banks began issuing bank notes that they could not back with gold and silver.
states charted random and untrustworthy banks.
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To eliminate the chaos, Congress charted the Second Bank of the United States in 1816.
Stability was restored but many were still wary of the Bank's power.
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as state-charted banks flourished once again from 1837 to 1863, the sheer number of banks gave rise to a variety of problem.
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The National Banking Acts of 1863 and 1864 gave the federal government the power to Charter banks, require that banks hold an adequate amount of gold and silver reserves, and issue a national currency.
In the 1870s the nation adopted the gold standard which set a definite value for the dollar.
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Problem persisted despite the stabilizing efforts of a national currency and adopting the gold standard.
In 1913, the Federal Reserve Act stablished the Federal Reserve System, which reorganized the federal banking system.
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President Franklin Roosevelt acted to restore the banking system in the 1930s by established the FDIC, which insured customer deposits if a bank failed.
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in the late 1970s and 1980s, Congress passed laws to deregulate several industries.
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abolished independence of S&Ls and transferred all insurance responsibilities to FDIC.
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It was triggered by a large decline in home prices after the collapse of a housing bubble, leading to mortgage delinquencies and foreclosures and the devaluation of housing-related securities.
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