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1791 Bank of the US
The Bank of the US received a charter in 1791 from Congress. This was then signed by President Washington. The bank's purpose was to collect fees and make payments in the interest of the federal government. The main issue the bank was that many states opposed it. They believed that the bank gave too much power to the federal government.
“First Bank of the United States.” Wikipedia, Wikimedia Foundation, 30 Apr. 2018, en.wikipedia.org/wiki/First_Bank_of_the_United_States. -
1816 Second Bank of US
The Second Bank of US was chartered in 1816. It was known to hold federal tax receipts and regulate the money in the economy. It failed because it didn't regulate state banks or charter any other bank. The bank proved to be unpopular among farmers and westerners.
“Second Bank of the United States.” Wikipedia, Wikimedia Foundation, 30 Apr. 2018, en.wikipedia.org/wiki/Second_Bank_of_the_United_States. -
Civil War (printing currency)
The state banks issued their own currency. It wasn't until after the Civil War did the federal government print paper currency. In 1862, they began to produce United States Notes which resemble our current currency.
“Greenback (1860s Money).” Wikipedia, Wikimedia Foundation, 15 Apr. 2018, en.wikipedia.org/wiki/Greenback_(1860s_money). -
1863 National Banking Act
The National Banking Act established that banks could have a state or federal charter. This was called duel banking. It was also designed to float federal war loans and establish a national currency.
(69), etcmike, et al. “Writing Checks Instead of Carrying CashsteemCreated with Sketch.” Writing Checks Instead of Carrying Cash - Steemit, steemit.com/til/@etcmike/writing-checks-instead-of-carrying-cash. -
1913 Federal Reserve Act
The Federal Reserve Act established the National Bank. It helped creat the current Federal Reserve System we have today. Its intention was to create an economic stable economy.
“Federal Reserve Act of 1913.” History of Federal Banking, www.okhistory.org/historycenter/federalreserve/edufra.html. -
1930's Great Depression
The Great Depression caused many banks to collapse. FDR in turn create a "bank holiday" where all banks will close. The banks were only allowed to reopen if proved they were financially stable.
“Bank Holiday.” NewDeal-Renfrow, newdeal-renfrow.wikispaces.com/Bank+Holiday. -
Glass-Steagall Banking Act
The Glass-Steagall Banking Act establishes the Federal Deposit Insurance Corporation. This will ensure that if a bank goes under, you will have your money. Commercial banks were also under this act to not interact in any speculation.
The New Glass-Stegall Bill We Should All Be Fighting For. progressforall.org/2017/05/19/the-new-glass-steagall-bill-we-should-all-be-fighting-for/. -
1970’s
In the 1970's, Congress relaxes restrictions on banks. The 1970's went through an inflation. Economic growth was weak resulting in high unemployment rates. Easy money policies were developed to create less unemployment rates.
Phillips-Fein, Kim. “The Legacy of the 1970s Fiscal Crisis.” The Nation, 29 June 2015, www.thenation.com/article/legacy-1970s-fiscal-crisis/. -
1982
In 1982, Congress allowed S&L Banks to make high risk loans and investments. The investments went bad and in turn caused banks to fail. This made the federal government had to give investors back their money. The federal government's debt increased to 200 billion dollars. The FDIC then decided to take over the S&L.
Amadeo, Kimberly. “How Congress Created the Greatest Bank Collapse Since the Depression.” The Balance, www.thebalance.com/savings-and-loans-crisis-causes-cost-3306035. -
1999 Gramm-Leach-Bliley Act.
The Gramm-Leach-Bliley Act allowed banks to have more control over insurance, banking, and securities. Some cons were that it created less competition, could lead to sharing of information, and could form a universal bank.
“Clinton And Gingrich Now Say It Was A Mistake To Help Wall Street End Glass-Steagall.” DownWithTyranny!, 10 Nov. 2011, downwithtyranny.blogspot.com/2011/11/clinton-and-gingrich-now-say-it-was.html.
