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The First Bank of the United States was opened
The Bank of the United States, now
commonly referred to as the First Bank, opened for
business in Philadelphia on December 12, 1791, with
a 20-year charter. The office was initially housed in
Carpenters’ Hall and remained there until the bank
moved to new quarters on Third Street six years later.
Branches opened in Boston, New York, Charleston,
and Baltimore in 1792. -
The Second Bank of the United States
The Second Bank of the U.S. was chartered in 1816 with the same responsibilities and powers as the First Bank. However, the Second Bank would not even enjoy the limited success of the First Bank. Although foreign ownership was not a problem (foreigners owned about 20% of the Bank's stock), the Second Bank was plagued with poor management. It also quickly alienated state banks by returning to the sudden banknote redemption practices of the First Bank. -
Civil War Money
The Civil War created a coinage shortage, so the first official paper currency of the United States entered circulation. They were called Demand Notes and came in $5, $10, and $20 increments printed in 1861. -
National Bank Act of 1863
The National Bank Act of 1863 was designed to create a national banking system, float federal war loans, and establish a national currency. Congress passed the act to help resolve the financial crisis that emerged during the early days of the American Civil War (1861–1865). The fight with the South was expensive and no effective tax program had been drawn up to finance it. -
1913 Federal Reserve Act
The 1913 Federal Reserve Act was a U.S. legislation that created the current Federal Reserve System. The Federal Reserve Act intended to establish a form of economic stability in the United States through the introduction of the Central Bank, which would be in charge of monetary policy. The Federal Reserve Act is perhaps one of the most influential laws concerning the U.S. financial system. -
1930s Great Depression
As the economic depression deepened in the early 30s, and as farmers had less and less money to spend in town, banks began to fail at alarming rates. After the crash during the first 10 months of 1930, 744 banks failed – 10 times as many. In all, 9,000 banks failed during the decade of the 30s. It's estimated that 4,000 banks failed during the one year of 1933 alone. By 1933, depositors saw $140 billion disappear through bank failures. -
Glass-Steagall Banking Act of 1933
Congress saw the need for substantial reform of the banking system, which eventually came in the Banking Act of 1933, or the Glass-Steagall Act. The bill was designed “to provide for 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.” -
Recession of 1982
The worst economic downturn in the United States since the Great Depression. Indeed, the nearly 11 percent unemployment rate reached late in 1982 remains the apex of the post-World War II era (Federal Reserve Bank of St. Louis). Unemployment during the 1982 recession was widespread, but manufacturing, construction, and the auto industries were particularly affected. -
1999 Gramm-Leach-Bliley Act
The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.
