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2008 BCE
Financial "Meltdown" and Bailout
In 2007s, a result of the subprime mortgage crisis is a sharp increase in the number of people who lose their homes because they cannot pay their mortgage. This leads to the worst economic crisis WWII. By late 2008, The US economy was on the edge of a financial catastrophe. It was in a recession. President Bush and land makers organized a $700 billion bailout of banks, auto markets and Wall Street financial firms. -
Period: 1940 BCE to 1980 BCE
Two Crises for Banking
Period of government regulation and long-term stability. 1940s-1960s and Period of deregulation; saving and loans face bankruptcies in 1980s In late 1970s and 1980s, Congress passed ;was of deregulation. Government regulation had protected savings and loans from some of the stresses of the marketplace. In 1970s, S&Ls made a long term loans for low rates. In 1980s, interest rates had skyrocketed that large amounts of depositors. In 1989, Congress passed legislation that essentially abolished. -
1933 BCE
Banking Reforms
President Roosevelt helps restore confidence in the nation's banks by establishing the FDIC. President Franklin D. Roosevelt acted to restore public confidence in the nation's banking system in 1933. He closed the banks that is bank holiday and restore trust in the financial system., and reopen again. Later in 1933, he created FDIC that is insurances for customers if a bank fail. In 2008 the bank totally worked well. -
1929 BCE
The great Depression
The Fed supported restore confidence in the nation's banking system. But it did not work enough and the economic keeps decline that begin in 1929. During 1920s, banking loans become large and high-risk businesses. Many people cannot pay back and lost job. In 1929, stock market crashed and bank was failed. -
Period: 1861 BCE to 1864 BCE
Stability in the Later 1800s
Civil War makes clear the need for a better monetary and banking system. The government needs to raise money because of military during the civil war. The US Treasury issues are first currency since the Continental it is demand note. At the weakened the Confederate notes become worthless.
The federal government reformed in the National Banking Act. The act made the banks to maintain money in their bank notes. In the 1870s, the nation adopted a gold standard sets a define of value for the $. -
Period: 1830 BCE to 1860 BCE
The Free Banking Era
President Jackson vetoes recharter of Second Bank in 1832, giving rise to the Free Banking Era.
1. Bank runs and panics: the bank could not keep gold and silvers in the bank, and pay back issues about them. Many banks were failed because the great number of people try to redeem their paper money at the same time.
2. Wildcat banks: People joke it be called wildcat banks because some banks were located on the frontier.
3. Fraud: Some banks that still alive, try to collect silvers but still lost. -
1816 BCE
Second Bank of the United States
Second Bank of the United States reestablishes stability. In 1816. It was limited 20 years charter. The second one makes slowly and carefully works for the public's confidence in a national banking system. Nicholas Biddle, who became president of the second bank in 1823 was responsible for restoring stability. He controlled the silvers well. Still, many Americans continued to be wary of the federal government's banking powers. In 1832, Jackson vetoed renewal even he agreed with in 1819. -
Period: 1811 BCE to 1816 BCE
Chaos in American Banking
*Period of instability follows expiration of First Bank's charter.The small business or farmers cannot pay it back money by gold and silvers coins. Without any kind of regulation, financial confusion resulted. prices rose rapidly. -
1791 BCE
First Bank of the United States
First Bank of the United States is established. It is that the Federalists were successful in creating a strong central bank in 1791. Congress created the Bank of the U.S. for a 20-years charter to operate. The bank is controlled by the government for taxes and to issue representative money. They try to support the small business or farms for borrowing money that is refused loans, and maintains business each other. Alexander Hamilton died in a famous duel in1804. The Bank functioned until1811. -
1789 BCE
Two views of Banking
- reestablishes stability* After the American Revolution, the leaders of the new nation decided to create the need to establish a safe, stable banking system that was important for growing the economy of new nation. It agreed with how that goal should be accomplished. Debate was happened between followers of Alexander Hamilton and followers of Thomas Jefferson. The Federalists followed Alexander Hamilton. The Antifederalists followed Thomas Jefferson.
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Period: 1780 BCE to 2008 BCE
the end of the American Revolution to the sub-prime mortgage collapse of 2008.
