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United States Banking Timeline
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Colonial Times
The significance of this time period is the development of the first national bank, and the first commercial bank. -
First Commercial Bank
The Bank of North America was started by an act of Congress. Up until this point, Congress had experimented with paper currency issues to help finance the Revolutionary War, but the complete collapse of these currencies lead not only to economic depression, but a serious morale problem for the troops and the populace. -
First Bank of The United States
The President, Directors and Company, of the Bank of the United States, commonly known as the First Bank of the United States, was a national bank, chartered for a term of twenty years, by the United States Congress. It followed the Bank of North America, the nation's first de facto central bank. -
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Banking Before 1913
Banking before 1913 includes the second bank of the United States, 1 year of no debt, the Gold standard, banking panic of 1907. -
Second Bank of The United States
The Second Bank of the United States was chartered for many of the same reasons as its predecessor, the First Bank of the United States. The War of 1812 had left a formidable debt. Inflation surged ever upward due to the ever-increasing amount of notes issued by private banks. resident Madison signed a bill authorizing the 2nd Bank in 1816 with a charter lasting 20 years. -
No National Debt
The U.S. national debt stood at zero, the first and only time in its history. It was a remarkable turnabout from Jan. 1, 1791, when the federal government was in debt to the tune of $75,463,476.52. But that wasn’t the peak amount of indebtedness for the new nation ($120 million), which occurred at the end of the three-year War of 1812. Lasted 1 year. -
The Gold Standard Act
This act established gold as the only standard for redeeming paper money, stopping bimetallism (which had allowed silver in exchange for gold). It was signed by President William McKinley. Only Lasted 33 years. -
Banking Panic of 1907
The New York Stock Exchange dropped dramatically as everyone tried to get their money out of the banks at the same time across the nation. This banking panic spurred debate for banking reform. JP Morgan and others gathered to create an image of concern and stability in the face of the panic, which eventually led to the formation of the Federal Reserve. -
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Banking in 20th Century
Banking in the 20th century included, the development of the fed, creation of the FDIC, stock market crash of 1929, first universal credit card, first atm in the U.S., and the saving and loan crisis. -
The Federal Reserve
The Federal Reserve is the central banking system of the United States. With the enactment of the Federal Reserve Act, largely in response to a series of financial panics, particularly a severe panic in 1907.It is Composed of FOMC and FRB from 12 districts spread around the nation. -
Stock Market Crash
After the market collapsed, stock prices had nowhere to go but up, so there was considerable recovery during succeeding weeks. Overall, however, prices continued to drop as the United States slumped into the Great Depression, and by 1932 stocks were worth only about 20 percent of their value in the summer of 1929. By 1933, nearly half of America’s banks had failed, and unemployment was approaching 15 million people, or 30 percent of the workforce. -
Federal Deposit Insurance Corporation
The FDIC is a United States government corporation providing deposit insurance to depositors in US banks. The FDIC was created by the 1933 Banking Act after the Great Depression to restore trust in the American banking system; more than one-third of banks failed in the years before the FDIC's creation, and bank runs were common. Franklin D. Roosevelt signed the 1933 Banking Act into law, creating the FDIC. -
First Universal Credit Card
Bank of America introduced a general-use credit card, the BankAmericard. Unique in the industry, it could be used for any type of purchase at participating merchants. Its use was not restricted to restaurants, hotels or entertainment. It eliminated the need for multiple cards that were designed for specific purchases like gas or restaurant meals. It was the first credit card program to offer revolving credit, allowing customers to pay down their balances over time. -
First ATM in United States
Chemical Bank installed the first cash machine in the US at its branch in Rockville Centre, New York. The first cash machines were designed to dispense a fixed amount of cash when a user inserted a specially coded card.Chemical's cash machine, initially known as a Docuteller was designed by Donald Wetzel and his company Docutel. Chemical executives were initially hesitant about the electronic banking transition given the high cost of the early machines. -
Savings and Loan Crisis
The failure of 1,043 out of the 3,234 savings and loan associations in the United States from 1986 to 1995: the Federal Savings and Loan Insurance Corporation (FSLIC) closed or otherwise resolved 296 institutions from 1986 to 1989 and the Resolution Trust Corporation (RTC) closed or otherwise resolved 747 institutions from 1989 to 1995. -
Housing Bubble
National home sales and prices both fell dramatically, the steepest plunge since the 1989 Savings and Loan crisis.It threatened the collapse of large financial institutions, which was prevented by the bailout of banks by national governments, but stock markets still dropped worldwide. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment.
