Module 13 Money and Banking
Lesson 2 mastery assignment by Kayla Lee
1791: The Bank of the US
The Bank of the US received a charter in 1791 from Congress; signed by President Washington. This bank collected fees and made payments on behalf of the federal government.Bank went away because state banks opposed it; thought it gave too much power to national government
1816: Second Bank of the US
Second Bank of the US was chartered in 1816. It failed because it didn't regulate state banks or charter any other bank state banks were issuing their own currency and the federal government didn't print paper currency until the Civil War.
1863: National Banking Act
Banks could have a state or federal charter (duel banking) and the National Banking Act helped develop a system of national banks and the development of a stable currency.
1913: Federal Reserve Act
National bank and the FDIC was created by FDR in response to the collapse o the banking system in 1913 from the great depression.
1930s: Great Depression/ banks to collapse
FDR declared a “bank holiday” where banks closed only allowed to reopen if they proved they were financially stable.
1933: Glass-Steagall Banking Act
Established the Federal Deposit Insurance Corporation ensures that if a bank goes under, you still have your money.
1970s: Banking Policies
1982: Congress allows S&L banks to make high risk loans and investments
Investments went bad banks failed Federal government had to give investors their money back Federal government went into debt of $200 billion and the FDIC took over the S&L.
1999: Gramm-Leach-Bliley Act
Allows banks to have more control over banking, insurance and securities but their is less competition and they may form a universal bank that could lead to more sharing of information and a reduction of customer privacy.