Mod 13 Lesson 2 Mastery Assignment

Baking Industry Timeline

1791 Bank of the U.S.

This bank collected fees and made payments to the Federal Government. This caused conflict between the Federal Government and state banks, who felt that the bank showed favoritism to the Federal Government. It was ended because of the states' opposition.
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1816 Second Bank of the U.S.

The Second Bank of the U.S. failed in 1836 due to several mistakes. The second banks allowed states to print their own currency, which caused disunity among the country. Also, there was no regulation for state banks or charter for other banks.
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Civil War

The Federal Government did not end up printing their own money until the Civil War. This allowed for a more unified country instead of the previous confusion of currency between states.
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1863 National Banking Act

Start of duel banking - Banks could have a state or federal charter.
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1913 Federal Reserve Act

The Central Bank is created.
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1930's Great Depression

The Great Depression caused the collapse of banks and to open or reopen, the banks had to be stable.
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Glass-Steagall Banking Act

The Glass-Steagall Banking Act created the FDIC (Federal Deposit Insurance Corporation). This separated commercial and investment banking.
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1970's

Congress starts to relax the restrictions on banking.
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1982

Congress decides to let savings and loan banks to make high risk loans and investments. However, the banks failed and the Federal Government had to reimburse investors for $200 billion. The FDIC then takes over savings and loans.
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1999 Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Act gave banks more control over banking, insurance, and securities. Normal commercial banks could now act as investment banks as well.
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