US Banking System

The Bank of Pennyslvania opens

Jul 17, 1780

Philadelphia merchants opened the bank to provide funds to the Continental Army to fight against Britain.

The Bank of North America opens

Jan 14, 1782

Continental Congress approves the bank to open in Philadelphia and loans money to federal and state governments and also to Philadelphia businesses.

End of American Revolution

1783

The Treaty of Paris ended the American Revolutionary War

Bank of the United States created

Feb 25, 1791

Secretary of the Treasury Alexander Hamilton asks the Congress to set up the bank. The bank issues paper money to pay the bills of the government and loan to farmers and businesses.

The charter for the Bank of the United States runs out

1811

Republicans oppose the bank. State banks had to make loans and issue money instead of the national bank.

The second national bank is chartered

Apr 10, 1816

Republicans realize the necessity of a national bank and supported a law to charter another national bank.

Federal government prevents Maryland from taxing the second BUS

Mar 6, 1819

Maryland attempted to tax the bank to drive it out of state but the bank cashier, James McCulloch refuses to pay the tax and was ultimately resolved in the Supreme Court.

President forces the BUS to close

1832

President Andrew Jackson sees the BUS as undemocratic and vetoes a bill to renew the charter 4 years early

The second BUS closes

1836

The closure of the BUS leads to an economic depression

Launch of an investment banking firm

Jan 1, 1861

A wealthy banker, Jay Cooke launches the first investment banking firm in the US to borrow 3 million dollars from the Pennsylvania government.

The Great Depression

Oct 24, 1929

American economy begin to decline due to consumer spending declination.

Glass Steagall Act

Jun 16, 1933

The act seperates commercial and investment banking

Subprime mortgage collapse

2008

A nationwide financial crisis triggered by a large decline in home prices after the collapse of a housing bubble