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Bank of the US
Proposed by Alexander Hamilton in 1790 the Bank of the United States was the first attempt made at a central bank and was intended to handle the financial needs and requirements of the newly formed United States and more specifically its government. -
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Mastery Assignment 2 Module 13
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Second Bank of the US
After the First Bank failed the government no longer tried to create another one due to the immense public distrust in government and widespread belief that banking should be a state level issue. In 1816, the government felt that creation of a national bank was necessary due to severe inflation caused by military overspending during the War of 1812. -
Civil War (printing currency)
The Civil War created a currency shortage which meant the US needed a way to create and control money which brought about the first official paper currency in the US, these original bills consisted of 5s, 10s, and 20$ increments. These notes then changed in 1892 to include money that more closely resembles modern day tender -
National Banking Act
Hamilton's idea for a bank where the government could safely deposit its money. The bank would make loans to the government and business. An idea that people who believed in states rights rejected. -
Federal Reserve Act
It was established in December 1913. it is the act that created the Federal Reserve System, the Central Banking System of the United States, which was signed into law by Woodrow Wilson. It regulated banking to help smaller banks stay in business. -
The Great Depression (regarding banking)
In December 1931, New York's Bank of the United States collapsed. The bank had more than $200 million in deposits at the time, making it the largest single bank failure in American history. The Great Depression was a wave of banking panics or “bank runs,” during which large numbers of anxious people withdrew their deposits in cash, forcing banks to liquidate loans and often leading to bank failure. -
Glass-Steagall Banking Act
It was passed as an emergency measure to counter the failure of banks during the Great Depression. It prohibited commercial banks from participating in the investment banking business. -
1970's (regarding banking)
Rapidly rising oil prices create an inflationary spiral, which raises interest rates. Recession follows. The expensive Vietnam War ends. Automation takes hold. -
1982 (regarding banking)
The 1981-1982 financial crisis was the failure of the majority of major money centre banks, including as always, Citibank, leading from the front. The problem was of course that the banks had lent freely to foreign governments who, now, were defaulting. Argentina, Brazil and the one that precipitated the major bailout…Mexico. -
Gramm-Leach-Bliley Act
Repealed Glass- Steagall Act of 1933, allowing banks to conoete with insurance and securities firms. Allowed commercial and investment banks to consolidate.
