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First Bank of the US
The first bank of the US received a charter from Congress in 1791. It collected fees and made payments on behalf of the federal government. This Bank went away because state banks opposed it. They believed it gave too much power to the federal government. -
Second Bank of the US
Chartered in 1816, it failed because it did not regulate state banks or charter any other bank. State banks were issuing their own currency. -
Civil War
The federal government did not print paper currency until the Civil War -
National Banking Act
This act stated that banks could have a state or federal charter (duel banking). -
Federal Reserve Act
This created the national bank -
Great Depression
The Great Depression caused banks to collapse. FDR declared a "bank holiday" where banks closed. This only allowed stable banks to stay open if they proved they were very stable. -
Glass-Steagall Banking Act
This act established the FEDIC which ensures that if a bank goes under, you still have your money. -
1970s
Congress relaxes restrictions on banks. -
S&L
Congress allows S&L banks to make high risk loans. Investments went under, banks failed, the federal government had to give everyone their money back, and the national debt reached $1.1 billion. Then, the FDIC took over the S&L. -
Gramm-Leach-Bliley Act
This allowed banks to have more control over banking, insurance and securities. There are many cons attributed to this act including the idea that it may have formed a universal bank and a reduction of privacy.
