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1791 bank of the US
Known as the First Bank of the United States. This bank was a national bank and was chartered for a twenty year term which was signed by President Washington. The bank went away because state banks thought it gave too much power to the national government. -
1816 Second Bank of the US
The Second Bank of the US was chartered in 1816 and was meant to be an improvement from the first bank of the US. The bank failed because it didn’t regulate state banks or charter any other bank. -
Civil War (printing currency)
States were printing their own currency. They printed paper money known as “greenbacks”. -
1863 National Banking Act
The National Banking Act was designed to create a national banking system. The act was made so that banks could have a state or federal charter, which is also known as duel banking. -
1913 Federal Reserve Act
The Federal Reserve Act created the National bank. It was intended to establish a form of economic stability. -
1930’s Great Depression (regarding banking)
The Great Depression caused the banks to collapse. Franklin D. Roosevelt declared a “bank holiday” where the banks closed and were only allowed to reopen if they proved to be financially stable. -
Glass-Steagall Banking Act
The Glass-Steagall Banking Act established the Federal Deposit Insurance Corporation which insured that if a bank goes under, the people would still have their money. -
1970’s (regarding banking)
The Glass-Steagall Banking Act grew controversial when banks complained that they would lose money to other companies. The government then allowed more freedoms to banks to offer more financial services. -
1982 (regarding banking)
During this time Congress allows S&L (savings and loans) banks to make high risk loans and investments. Because of this investments went bad, banks failed, and the federal government had to give investors their money back. The Federal government debt was $200 billion and the the Federal Deposit Insurance Corporation took over the S&L. -
1999 Gramm-Leach-Bliley Act
The 1999 Gramm-Leach-Bliley Act removed barriers in the market in banking, insurance, and security companies, which allowed the banks to have more control.
