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Nation has no medium of exchange because federalists and antifederalists disagree on a system.
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President Washington appointed Hamilton as secretary of treasury and he proposed a national bank.
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President Washington appointed Hamilton as secretary of treasury and he proposed a national bank.
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First bank of the United States is established.
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Hamilton died in a duel with the vice president Aaron Burr (bank lost main backer)
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Bank lost first charter and a period of instabiility followed.
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Second bank of the United States reeastablishes stability.
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Supreme Court ruled national bank constitutional
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Nicholas Biddle was responsible for restoring stability in the bank
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The number of state chartered banks nearly tripled.
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President Jackson vetoes recharter of second bank.
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Known as free banking or wild cat era
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estimated 8,000 banks were circulating currency
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Civil war started, making banking problems worse; U.S. Treasury issued its first currency since the Continental.
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National Banking Acts of 1863 and 1864 establish national banking system and uniform currency
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Nation adopted a Gold Standard
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Panic of 1907 leads to creation of the federal Reserve System, government made plans to reinstate central bank.
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President Wilson signs Federal Reserve Act.
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banks loaned large sums of money to many high-risk businesses.
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Great Depression begins.
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President Roosevelt establishes the FDIC; on March 5th, he declared a bank holiday.
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Period of government regulation and stability.
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new laws make clear righgt and responsibilities of banks and consumers
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Congress passed laws to deregulate several industries; S&L face bankruptcies.
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Congress passed Financial Institutions Reform, Recovery, and Enforcement Act which abolished independence of savings and loan industry
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growing trend toward bank mergers.
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Congress repealed the 1933 Glass-Steagall Act
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Banking system is stable and healthy.
