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The Fist Bank of the US
The first national bank of the United States of America formed after President Washington's approval. The bank failed due to the state banks thinking the bank gave more central power. -
Second Bank of the US
Chartered in 1816 by President James Madsion and operated for 20 years. It failed because the bank did not regulate state banks or charter any other bank. -
Civil War Money
During the early stages of the Civil War the country witnessed the printing of bills for currency. This was the first time the country used printed money. -
1863 National Bank Act
This act created the national banking system for the United States. This encouraged national currency regulated by the US treasury. It also created duel banking with national and state banks. -
Federal Reserve Act
Created the current Federal Reserve System. This act intended to form an economic stability throughout the coutnry by introducing Central Banking, which would be in control of the monetary policy for the US. -
The Great Depression's Affect on Banking
When the Great Depression struck the banks were in trouble and FDR declared a bank holiday where the banks would close. The banks were not allow to reopen until they could prove they were financially stable. -
Glass-Steagall Bsnk Act
The act was established to create the Federal Deposit Insurance Corporation (FDIC). This corporation ensures that if a bank goes under the consumer would not lose their money stored in that bank. -
Congress Acts
The entire decade of the 70's Congress began to relax their restrictions on the banks in the country. -
Congress Gives Power to S&L
Congress allowed S&L to make high risk loans and investments. The result was investments went bad, banks failed, Federal government had to give investors money back, the Federal government was in debt $200 billion, and the FDIC took over S&L. -
Gramm-Leach-Bliley Act
This act gave more power to the banks to have more control over banking, insurance, and securities. The downfall was there was less competition and the possibility of universal banking which could lead to less privacy.
