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Period: 1100 to 1300
European banks make loans to rulers for trading and exploration
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Period: to
European and US intermediaries buy government debt and resell to investors for profit.
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Period: to
US Civil War and railroads are financed through bonds.
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Panic of 1873
Jay Cooke and CO. made a speculation that failed and went bankrupt which led to other firms and industries collapsing. 18,000 businesses failed in the next two years causing the unemployment rate rise to 14%. -
Panic of 1907
F. A. Hines failed when he tried to control the price of shares of a company which caused banks to fail and the stock market to close when everyone tried to take their money out. -
Federal Reserve Act and System passed and established
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Period: to
Roaring Twenties
Economic growth period. -
Stock market crash of 1929
Commercial and investment banks became reliant on investments from wealthy people. People spent money frivoulously. There were few regulations on investment firms and brokers. The stock market crashed and banks failed. The money and savings of everyone was gambled away and everyone lost their money. New laws required banks to provide their consumers with important information. -
Federal Securities Act
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Glass-Steagall Act
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Federal Deposit Insurance Corporation established
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Subprime mortgage crisis of 2008
Housing mortgages were pretty low and many people applied for subprime mortgages. Then interest rates grew higher and higher until the housing market crashed. Subprime mortgage lenders
layoffed employees and filed for bankruptcy.There are now more charges in banking.
