U.S. Banking System

By 945689959

  • The First Bank

    The First Bank
    In 1971, Congress set up the bank of the United States, granting it a 20-years charter to operate. (http://teachingamericanhistory.org/static/convention/map/1stbank.html)

  • The charter for the BUS runs out.

    The charter for the BUS runs out.
    Despite the Bank's help in developing the economy, Republicans oppose a national bank, and in 1811 the charter for the Bank of the United States runs out.

  • The Second Bank of the United States

    The Second Bank of the United States
    To eliminate this financial chaos, Congress chartered the Second Bank of the United States in 1816.

  • The federal government prevents Maryland from taxing the Bank.

    The federal government prevents Maryland from taxing the Bank.
    After the second Bank is chartered, Maryland attempts to tax the Bank in order to drive it out of the state. James McCulloch, the Bank cashier, refuses to pay the tax, and the conflict is resolved in the Supreme Court. (https://study.com/academy/lesson/the-case-of-mcculloch-v-maryland-summary-decision-significance.html)

  • President Andrew Jackson forces the Bank to close.

    President Andrew Jackson forces the Bank to close.
    Although the charter for the BUS is not up for renewal until 1836, President Andrew Jackson, who sees the Bank as undemocratic, vetoes a bill to renew the charter four years early. (https://www.wsj.com/articles/SB122360636585322023)

  • Congress approves the National Bank Act

    Congress approves the National Bank Act
    As the Union battles the Confederacy in the Civil War, the war grows increasingly expensive, with no clear tax program in place to finance it.

  • The Federal Reserve Act sets up a new system of federal banks.

    The Federal Reserve Act sets up a new system of federal banks.
    Under President Woodrow Wilson, who hopes to restore the national economy, Congress passes the Federal Reserve Act in 1913.

  • Glass-Steagall Act of 1933

    Glass-Steagall Act of 1933
    The Glass–Steagall Act of 1933 was passed in reaction to the collapse of a large portion of the American commercial banking system in early 1933. (https://www.newyorker.com/business/currency/what-would-be-wrong-with-trump-restoring-glass-steagall)

  • Creation of the FDIC and FSLIC

    Creation of the FDIC and FSLIC
    in June 1933, over Roosevelt's objections, Congress created the Federal Deposit Insurance Corporation (FDIC), which insured deposits for up to $2,500 beginning January 1, 1934. (http://voices.washingtonpost.com/securityfix/2009/11/fdic_uptick_in_money_mule_scam.html)

  • Banking Act of 1935

    Banking Act of 1935
    The Banking Act of 1935 strengthened the powers of the Federal Reserve Board of Governors in the area of credit management.