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Two views of banking
Alexander Hamilton put forward a plan of the national bank, he hope to have a centralized banking system ,he believe a strong banking system was necessary to develop healthy industries and trade. But Thomas Jefferson does not agree to the plan,they supported a decentralized banking system where the states would establish and regulate all banks within their borders.He favored a decentralized banking system in which states established and regulated Banks within their borders. -
The First Bank Of The United States
Alexander Hamilton won the first debate, the United States congress established the bank of United States.Washington signed the "bank bill" into law. -
The State banks
Antifederalists think the bank is in violation of the constitution, because it will only bring benefit to the rich, the poor did not benefit. until 1811 that established the articles of association. State banks then took over for the Bank of the United States, which created a great deal of chaos and confusion. -
The Second Bank Of The United States
In order to eliminate the chaos, congress charted the second bank in the United States, to restore the stability of the bank.But the power of the bank of a lot of people still hold cautious attitude. -
Vetoed the renewal
Congress tried to renew the Bank’s charter, President Andrew Jackson vetoed the renewal. He argues that the Bank gives privilege and unfair advantage to a wealthy few at the expense of the public, and he opposes foreign ownership of Bank stock.
And he believe that the central bank is bloods LaoNong class to enhance the wealth of the business elite.Succeeded in destroying the central bank. -
The free banking era
The American banking system chaos, panic caused the contraction of the banking sector and gave rise to a variety of problems.The Panic was followed by a five - year ', with the failure of Banks and then record - high unemployment levels. -
Stability In The Later 1800S
The National Banking Acts of gave the federal government the power to Charter banks and require that banks hold an adequate amount of gold and silver reserves and Issue a national currency -
Banking in the early 1900S
The Federal Reserve Act established the Federal Reserve System, which reorganized the federal banking system to include the 12 Federal Reserve Banks , the Federal Reserve Board , Short-term loans , Federal Reserve notes -
The saving and loan crisis
Congress passed legislation that abolished the independence of the Savings and Loan industry. -
Financial crisis
Since the subprime credit crisis, investors began to lose faith in the value of mortgage-backed securities, causing a liquidity crisis.Even if the multinational central bank repeatedly inject billions of dollars into the financial market, is also unable to prevent the outbreak of the financial crisis, the financial crisis began to spiral out of control, and lead to more fairly large financial institutions collapse or by the government to take over, and trigger a recession.
