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Federalists v.s. Antifederalists
The nation has no reliable medium of exchange. Federalists and Antifederalists disagree about a banking system -
First Bank
First bank of the United States is established -
700 private banks
700 private banks in the united states -
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First Bank Instability
Period of instability follows expiration of First Bank's charter -
Second Bank of the United States
Second bank of the united states reastablishes stability -
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Free Banking Era
President Jackson vetoes recharter of Second Bank in 1832, giving rise to the free banking era -
1600 banks
1600 banks world wide at this tme -
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Need for better banking
Civil War makes clear the need for a better monetary and banking system -
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National Banking Acts
National Banking Acts of 1863-1864 establish national banking system and uniform national currency -
federally made currency
first federally made currency -
Gold standard
United States adopted the gold standard -
Locks and banks
1st time locks used in banks -
Federal reserve System
Panic of 1907 leads to creation of the Federal Reserve System -
Federal Reserve Act
President Wilson signs Federal Reserve Act -
Bad loans
banks gave out loans to high-risk businesses that couldn't pay back loans witch lead to to grat depression -
Great Depression
a severe worldwide economic depression in the decade preceding World War II -
First Bank of America
the first bank of america originated in New York, New York -
FDIC established
President Roosevelt helps restore confidence in the nation's banks by establishing the FDIC -
Glass steagall act
limited commercial bank securities activities and affiliations between commercial banks and securities firms.[ -
Bank holiday
roosevelt declared a national "bank holiday" and closed the nations banks -
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Gov't regulation and long-term stability
Period of government regulation and long-term stability -
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New laws for banks and consumers
New laws make clear the rights and responsibilities of banks and consumers -
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Deregulation
Period of deregulation; S&Ls face bankruptcies -
Congress passes FIRREA
this act abolished the independence of the savings and loan industry and transfered insurance resopnsibilities to the FDIC -
Repeal of the Glass Steagall Act
this action paved the way for banks to sell financial assets such as stocks and bonds while establishing new privacy rules for customer data -
Stability
After 2 decades of mergers, the banking system emerges stable and healthy
