History of America's Banks


1791 Bank of the Us

The Bank of the US was chartered in 1791 by Congress, and signed by President Washington. Tee bank made payments and collected fees for the government. This bank failed because state banks opposed the power that the Bank of the US, and the national government held.

1816 Second Bank of the Us

The Second Bank of the US failed because it didn't regulate state banks or charter any other banks. State banks were issuing their own currency.

Civil War Currency

The federal government did not print paper currency until the Civil War.

1863 National Banking Act

This act said that banks could have a state or federal charter, which is called duel banking.

1913 Federal Reserve Act

This act set up a national bank, called the Federal Reserve.

1930's Great Depression and Banking

The Great Depression was caused by a stock-market crash, and the people's loss of trust in banks. Lots of people pulled all of their money out of banks, and the stock market. In response, FDR declared a 'bank holiday', in which banks were only allowed to re-open if they were financially stable.

Glass- Steagall Banking Act

This act established the Federal Deposit Insurance Corporation, which ensures that if the bank goes under, you still have you money.

Banking in the 1970's

In the 1970's, the government relaxed restrictions on the banks.

Banking in 1982

In 1982, Congress allowed S&L banks to make high risk loans and investments. When the investments went bad, the banks failed and the federal government had to give investors their money back, causing FDIC to take control of S&L and the federal government to owe $200 billion.

1999 Gramm-Leach-Bliley Act

The 1999 G-L-B Act allowed banks to have more control over banking, insurance and securities. This caused less competition, and fear of a formation of a universal bank, and more sharing of personal information.