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1791 Bank of the USA
This was the first National Bank of America as proposed by Alexander Hamilton. Many were against this saying it wasnt even constitutional or fair to the state banks. Fear of losing the so called agrarian nation, to business and profit persuit. This would forever change how we would begin to unite our money and not have just states money which was hard to keep track of. -
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Second Bank Of the US
This bank was in a 20 year charter, it was not very relevant to the people wanting to use the bank as 80% of it's share was held by 4,000 private investors. Modeled fter Hamiliton's first national bank it was there to mediate with the people by regulationg credit issues handed out through private banks with the duties performed by the US treasurie. -
civil war printed money.
When the civil war started, the gov't realized how expensive it was and needed a way to help pay the nearly $5.2 debt off. S o they passed an act giving permission for the southern states to print there own money that they thought was being backed by gold but it wasnt so the nation just ended up in more debt than when it started. This money was called greenbacks and could pay taxes or goods from a store. -
1863 National Banking Act
It took time but the goals of this act were to 1)create system of national banks. 2)create uniform national currency. 3) to create an active secondary market for Treasury securities to help finance the Civil War. Because the states didn't want to give up their money the gov't put a 10% tax on anyone who used it including banks, this decreased the amount of greenbacks significantly and restored faith in a national system. -
1913 Federal Reserve Act
This was intended to establish a form of economic stability through the introduction of the Central Bank, which would be in charge of monetary policy, into the United States. Possibly one of the most influencial acts passed. The act also gave the 12 Federal Reserve banks the ability to print money in order to ensure economic stability (as scares were common back then). In addition to this task, the Fed had the power to adjust the discount rate/the fed funds rate and buy & sell U.S. treasuries. -
The Great depression (banking view)
Scares were fairly common around the early 1900's but nothing of this size. Nobody had expected that the bonds would take to being as cheep as they were then would jump prices and you would sell for X10 what you bought becoming a millionaire over night. For some reason the inflation bubble 'burst' and everybody wanted to get their money out of the bank when thats impossible, the value of the dollar plumeted and banks went bankrupt not being able to pay back people and finding themself in debt. -
Glass-Steagall Act
This act prohibited commercial banks from participating in the investment banking business.The Act was passed as an emergency measure to counter the failure of almost 5,000 banks during the Great Depression. In the end it lost its potency in subsequent decades and was finally repealed in 1999. -
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Banking in the 1970's
Several people have said that banking was ina way simpler but you didnt have computers keeping track of everything; there were cards with all of peoples information and the atmosphere wasnt as laid back. There were big banks and then the Technology hit, intrest rates went up and banks continued to grow. 'multi-banking' and the shares grew as corporate banks grew and held stakes in states as sever debates were held on this subject. -
1982 Banking
During the 1970s, two large oil price shocks created current account deficits in many Latin American countries. Latin American borrowing from US commercial banks and other creditors increased dramatically during the 1970s. At the end of 1970, total outstanding debt from all sources totaled only $29 billion, but by the end of 1978, that number had skyrocketed to $159 billion. By 1982, the debt level reached $327 billion (FDIC 1997). -
Gramm-Leach- Bliley Act (glibba)
This repealed part of the Glass-Steagall Act; removing barriers in the market among banking companies, securities companies and insurance companies that prohibited any one institution from acting as any combination of an investment bank, commercial bank, and an insurane company.
