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Bak of the US
This was the First bank of the US. This bank collected fees and made payments on behalf of the Federal Government. This bank ended up going away because the states opposed it. They thought it gave too much power to the Federal Government. -
Second Bank of the US
This bank ended up failing because it did not regulate state banks or charter any other banks. State banks were issuing their own currency. -
Civil War
The Federal Government began printing currency during the Civil War. -
National Banking Act
This Act allowed states to have a state or federal charter. This was known as Duel Banking. -
Federal Reserve Act
This Act intended to establish a form of economic stability through the introduction of the Central Bank, which would be in charge of monetary policy in the US. -
Great Depression
The Great Depression caused banks to collapse due to the instability of the economy and the market crash. FDR declared a "bank holiday" where banks closed. They were only allowed to reopen if they were financially stable. -
Glass-Steagall Banking Act
This Act established the Federal Deposit Insurance Corporation. This ensures that if a bank goes under, you still have your money. -
Banking in the 1970's
During the 1970's Congress relaxed some of the restrictions on banks. -
Banking Crisis of 1982
1982 proved to be a bad year for the banking industry. Congress allowed Savings & Loan banks to make high risk loans and investments. The investments went bad and many banks failed. The Federal Government had to give investors their money back. This caused the Federal Government to go into debt for about $200 billion. This is when the FDIC took over the S&L. -
Gramm-Leach-Bliley Act
This Act allowed banks to have more control over banking, insurance, and securities. The downside is that it allows for less competition, may form a universal bank, and may lead to more sharing of information which will mean less privacy.