Timeline of the National Bank
First Bank of the US - 1791
In 1791, the Bank of the US received a charter from Congress and was signed into action by George Washington. It was made to collect fees and make payments for the federal government. However, the Bank later was removed because the state banks said it was given too much power.
The Great Depression - 1930's
The Great Depression, which was the nation's most devistating economic depression, caused the stock market and many banks to collapse. In order to relieve some of the devistation, FDR issued a "bank holiday" that closed all banks so they could recover from the Depression. They were not allowed to reopen until proven that they were financially stable.
Saving and Loan Crisis - 1982
Saving and Loan Banks are given the rights to make high risk loans and investments. However, these investments failed and the banks crashed. To fix this, the Federal Government had to pay back investors and lost nearly $200,000,000,000 dollars. After this, the FDIC took over the Saving and Loan Banks.
Gramm-Leach-Bliley Act - 1999
This act allowed banks to have more control over banking, insurance and securities. However, people were afraid that this would cause banks to become less competitive and for their to be a central bank forming. The believed this would ultimately end in the reduction of banker's privacy.