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1791 First Bank of the US
The first bank of the US was chartered for 20 years by Congress in 1791. Many people opposed of the bank, saying it gave too much power to the federal government. -
1816 Second Bank of the US
Chartered for many different reasons, the main two being the reviving interest in a national bank and the debt from the War of 1812. Many people didn't like the bank for the same reason as the first; they believed that the bank granted too much federal power. In 1832, President Jackson vetoed the recharter of the bank. -
Civil War and Paper Currency
With a shortage of silver and gold, production of coins was coming to a halt and the South needed a way to pay war supplies. They came up with the idea of paper currency, more of way to say "I'm going to pay you back," rather than that being the actual payment. -
1863 National Banking Act
This was created to make a national banking system, float federal war loans, and also to establish a currency for the nation as a whole. -
1913 Federal Reserve Act
Created the Federal Reserve System, which was done to promote a sense of economic stability. It also created a Central Bank which was in charge of any monetary policies in the United States. -
Great Depression and the Economy
About 9,000 banks failed during the Great Depression, and FDR declared a bank holiday to keep people from withdrawing money and evaluate the banks on if they should re-open or shut down. The FDIC was then created in 1933 to protect peoples deposits within a bank in the event the bank fails. -
1970's and Banking
The economy started inflating in the 1970's because of the stock market becoming a mess. The growing of the economy was also next to non-existent in this time as well. Interest rates for cars and houses was going up, far more than what the average person could afford. -
1982 and Banking
In the early 1980's the US started going into a recession that started to improve in late 1982. -
1999 Gramm-Leach-Bliley Act
This act requires financial institutions to explain their sharing practices to customers and safeguarding sensitive data. -
Glass-Steagall Banking Act
This was an emergency legislation passed just days after FDR taking office. This was going to be the start of the process to restoring the economy and banking after the great depression.
