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Bank of the US
The Bank of the United States recieved a charter from Congress on 2/25/1791. It was allowed to collect fees and make payments for and by the federal government. It came to an end when state banks where protesting against the bank since they believed that it gave the federal government to much power. -
Second Bank of the United States
Just like the First Bank, the second bank also failed with states printing their own currency. The Federal Government did not start to print money until after the civil war. State banks just started to do what ever they wanted because they where not regulated by the federal bank. -
National Bank Act of 1863
The National Act of 1863 established a national currency for the United States. With the Act is constructed the Office of the Comptroller of the Currency under the US Treasury. During the Civil War, it made the banks want to buy federal bonds and made states pay taxes if the currency was not matching the federal currency. -
Federal Reserve Act
The Federal Reserve Act was very important for its creation of the Central Bank. With allowing the Central Bank to take hold it allowed for the US dollar to be issued. -
1930's Great Depression
During the Great Depression, an estimated 11,000 banks closed down after the stock market crashed and the money supply was gradually shriveling up. Loans where not able to be given and business where not able to keep stable. Federal Deposit Insurance Corporation was established that would insure that no money could be lost if it was insure. -
Glass Steagall Act
The Glass-Steagall Act also known as the 1933 Banking Act was to help rebuild after the Great Depression. It saw to have two different banks the commercial banks and the investment banks. With these two banks it also wanted to create the Federal Deposit Insurance Corporation which would insure deposits up to $5,000. -
Civil War Printing Currency
During the battle between the North and the South, the North started to run low on money so they started to print paper called Demand Notes ($5,$10,$20). in 1962 is when Legal Tender Notes came out that is more like our money today. In the South they did not want to have the US written on the money so they printed money with confederate leaders. The main idea behind the printing of paper is because the loans of coins to support the war was to high price. -
1970's Banking
Congress relaxes restriction on banking by an example of the Banking Holding Company Amendments. The Amendment was to have Federal Reserve approve bank holding companies. It also liberalize non-bank activity restrictions. -
1982 (Regarding Banking)
In 1982, Congress allowed for the Saving and Loans Association banks to give out high risk investments and loans. By making these high risk investments the banks ended up failing because they could not support themselves. The Government ended up having to reimburse the investors which allowed the FDIC to take over the S&L. -
Gramm-Leach-Bliley Act
The Gramm-Leach-Bliley Act was a way for banks to have more control over insurance, banking, and securities. It allowed the Commercial Banks to act as a investment banks so in other words it reduce the Glass Steagall Act.
