Banking Industry
United States
1791 Banking In the US
- The Bank US received a charter in 1791 from Congress
- this bank collected fees and made payments on behalf of the federal government
- the first bank went away because state banks opposed it; thought it gave to much power to the national government
1816 Second Bank of the US
- The second bank failed because it didn't regulate state banks
- didn't charter any other banks
Civil War
- federal government started printing paper currency
- there was at least 70 different currencies
1863 National Banking Act
- banks could have a state or federal charter which is known as dual banking
1913 Federal Reserve Act
- national banks
1930's Great Depression
- Franklin D. Roosevelt declared a "bank holiday" where banks are closed
- banks were only allowed to reopen if they proved they were financially stable
Glass-Steagall Banking Act
- Installed the Federal Deposit Insurance Corporation
- FDIC- ensures that if a bank goes under, you still have your money
1970's
- congress relaxes restrictions on the banks
1982
- congress allows S&L banks to make high risk loans and investments
- the investments went bad causing banks to fail
- The Federal government had to give investors their money back
- debt was $200 billion
- FDIC took over the S&L
1999 Gramm-Leach-Bliley
- allows banks to have more control over banking, insurance, and securities
- the cons of that were that there was less competition and reduction of privacy
1791 Banks in the US
- the first bank
1816 Second Bank of the US
Civil War
National Banking Act 1863
Federal Reserve Act
Great Depression 1930's
Glass-Steagall Banking Act
1982 Banking
1999 Gramm-Leach-Bliley Act
The Glass-Steagall Act was repealed by passing the Gramm-Leach-Bliley Act ( President Clinton)