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1791 Bank of the US
The first bank in the US. The bank was needed because the government had a debt from the revolutionary war, and each state had a different form of currency. It was built while Philadelphia was still the nation’s capital. -
Second Bank of the US
The formal name of this bank was “The president, directors, and company of the bank of the united states.” The bank handled all fiscal transactions for the US government, and was accountable to congress and the US treasury. 20% of its capital was owned by the federal government, the banks single largest stockholder. -
Civil War
Greenbacks were paper currency (printed in green on the back) issued by the United States during the American Civil War. They were in two forms; Demand Notes issued in 1861-1862, and United States Notes issued in 1862-1865. -
National Banking Act
Was designed to create a national banking system, float federal war loans, and establish a national currency. Congress passed the act to help resolve the financial crisis that emerged during the early days of the American civil war. -
Federal Reserve Act
Created the current Federal Reserve System. The act intended to establish a form of economic stability though the introduction of the central bank which would be in charge of monetary policy into the United States. -
Great Depression
The 1930’s Great Depression caused banks to collapse. FDR declared a ‘bank holiday’ where banks closed and were only able to reopen when they proved they were financially stable. -
Glass- Steagall Banking Act
Passed by congress in 1933 and prohibits commercial banks from engaging in the investment business. It was enacted as an emergency response to the failure of nearly 5,000 banks during the great depression. -
1970's
– In the 1970’s the Bank Secrecy Act required US financial institutions to assist US government agencies to detect and prevent money laundering. The act required financial institutes to keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000, and to report suspicious activity that might signify money laundering, tax evasion, or any other criminal activities. -
1982
Congress allowed S&L banks to make high risk loans and investments. Investments went bad and banks failed. The Federal Government had to give investors their money back, and the debt went up to $200 billion. The FDIC took over the S&L -
Gramm- Leach- Bliley Act
This act allows banks to have more control over banking, insurance, and securities. The cons to this act are less competition, may from a universal bank, and may result in reduction of privacy.
