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Bank of the US
Proposed by Alexander Hamilton in 1790 the Bank of the United States was the first attempt made at a central bank and was intended to handle the financial needs and requirements of the newly formed United States and more specifically its government. http://www.ushistory.org/tour/first-bank.htm -
Second Bank of the US
The fail of the First Bank led to widespread government distrust of the people. Because of this, a new bank was not created for some time, the leaders at the time believing banking was best left to the state governments. In 1816, the government felt that creation of a national bank was necessary due to severe inflation caused by military overspending during the War of 1812. http://www.historycentral.com/NN/Secondbank.html -
Civil War (printing currency)
The Civil War created a currency shortage due to the need to purchase materials for war. The US needed a way to control currency in better fashion than previously done with earlier bills, which led to the creation of new ones. These original bills consisted of $5, $10, and $20 increments. These notes then changed in 1892 to include money that more closely resembles modern day notes. http://www.americanyawp.com/text/14-the-civil-war/ -
National Banking Act
The National Banking Act of 1863 was passed in order to create a national banking system, a national currency, and to float federal war loans. Congress passed this act, during the financial crisis that arose during the Civil War, to draw up a system to finance the War. The act improved the situation but did not fix it. Many banks were driven out of business, but other state banks became national banks through legislation. http://civilwar.gratzpa.org/2013/02/national-banking-act-of-1863/ -
Federal Reserve Act
The Federal Reserve Act created the Federal Reserve, sometimes called the Fed, as the national bank. The Fed provided the nation with a safer, more flexible, and more stable monetary system. The Federal Reserve Act set the laws around the Fed's purpose, structure, and functions. It divided the nation into 12 federal banking districts. https://www.safesystems.com/blog/2013/12/hot-heels-occ-federal-reserve-updates-vendor-management-guidance/ -
The Great Depression (regarding banking)
The Great Depression brought about erosion in American's confidence in the banking system. The contraction in money supply meant less money in circulation. This greatly reduced purchasing power. The depression also led to around 13 million Americans being unemployed. Unemployment was horrible for banks because with no income, banks didn't have a steady wave of people investing in them. https://historymartinez.wordpress.com/2012/07/11 -
Glass-Steagall Banking Act
The Glass-Steagall Act separated commercial banking from investment banking and created the Federal Deposit Insurance Corporation (FDIC). It was signed into law by President Franklin Roosevelt. Congress saw that the banking system needed to be revised. This act created " the safer and more effective use of the assets of banks, to regulate interbank control, to prevent the undue diversion of funds into speculative operations, and for other purposes". https://static01.nyt.com/images -
1970s (regarding banking)
Stock market crises, inflated interest rates, and falling tax receipts characterized the 1970s banking atmosphere. New York was on the verge of bankruptcy during this fiscal crisis. Many organizations and banking institution laws were created during this time of economic secrecy and infidelity. https://www.flickr.com/photos/bdnegin/322360691 -
1982 (regarding banking)
The Bank Holding Company Deregulation Act of 1982 was a bill to authorize the formation of a bank securities affiliate to deal in, underwrite and purchase government and municipal securities, to sponsor and manage investment companies.This amended section 23A of the Federal Reserve Act, which stated otherwise. Because of this, trust in banking increased throughout the nation. https://www.motherearthnews.com/~/media/Images/MEN/Editorial/Articles/Magazine%20Articles/1982/09-01/ -
Gramm-Leach-Bliley Act
The Gramm-Leach-Bliley Act required financial institutions to disclose information and data sharing practices to customers as well as providing safeguards for their customers sensitive data. This was created to make a more modern banking system built on mutual trust between consumer and bank. Increased security of data led to more consumers of financial customers. https://ld7un47f5ww196i744fd5pi1-wpengine.netdna-ssl.com/wp-content/uploads/2017/04/glba-compliance-logo.gif
