Important Events In Banking History
A TImeLine by: Camryn Mathiason
1816 Second Bank of the US
The Second Bank was located in Philadelphia and this was the second bank made during the 20 year charter. The Second Bank of the US did not work because it didn't regulate state banks, also it didn't charter any other banks.
Glass Steagall Banking Act
The Glass Steagall Banking Act established the Federal Deposit Insurance Corporation, this was made incase a bank fails it still has its money. This also prevented banks from participating in the investment banking business.
In the 1970s the government released their tight grip on banks and they became more relaxed on their restrictions.
In 1982 the government allowed banks to make investments and loans that could be risky, the out come was that the banks failed and the investments went bad. This is where the government went into debt because they had to give people their money back, the debt was around $200 million. The result of this is the FDIC taking over the banks.
1999 Gramm-Leach-Bliley Act
This act was put in place to give banks more control, banks were then able to control their securities, insurance, and their banking. This act was also called the finical modernization act. Some things this act could lead to are the reduction of banks privacy and the formation of a universal bank.