The Bank Industry Over Time

By Rowaida Hamdan

1791 Bank of the U.S.

The 1971 Bank of the U.S. was proposed by Alexander Hamilton for a place to keep federal funds. It was open for 20 years by a Congress charter. However, many people thought the Bank of the U.S. was a bad idea because it gave too much power to the central government and it limited the nation's economy and they managed to prevent the charter from being renewed.
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1816 Second Bank of the U.S.

The 1816 Second Bank of the U.S. was chartered for 20 years. However, many people called it fraud and claimed it had poor management. People tried to mark it as unconstitutional twice. In 1823, when Nicolas Biddle became the new bank President, it functioned as hoped. When they produced a renewal bill, President Jackson vetoed it.
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Civil War (Printing Currency)

To pay for the Civil War, the government came up with paper money. There were over 70 different types of currency. The money they made was called greenbacks. It was backed up by gold in the treasury. This act was called the Lender Tender Act.
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1863 National Banking Act

The 1863 National Banking Act started during the Civil War. It consisted of placing several national charter banks backed up by the government. In 1864, this act was amended so that the state currency would be taxed.
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1913 Federal Reserve Act

The 1913 Federal Reserve Act was signed by President Wilson after the nation confronted a financial crisis in 1907 to stabilize the banking system. The U.S. could no longer rely on wealthy individuals to save them from another financial crisis. Many people were unhappy with the bill when it was passed because they claimed it gave too much power to the government.
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1913 Great Depression

In the 1913 Great Depression, the banks went out of business because of the stock market crash. Consumer spending and investment came to a halt, and too many Americans were unemployed. President Roosevelt helped make the Great Depression bearable. In 1939, World War II helped bring the nation's economic state improve.
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Glass-Steagall Banking Act

The Glass-Steagall Banking Act was created in 1933 after the collapse of banks during the Great Depression. It prohibited commercial banks from participating in investment businesses. The Glass-Steagall Act was an emergency act that gave security to the U.S.'s financial system.
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1970s (Regarding Banking)

In the 1970's the Glass-Stegall Act convinced many companies that they would lose several customers unless they added more services. The stock market was a mess, and it was known as the Great Inflation of the 1970s. This was because of failure of the macroeconomic policy.
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1982 (Regarding Banking)

In 1982, Mexicans and other Latin Americans entered a crisis of debts. Mexico ran out of cash because of the devaluation of the peso. The government nationalized Mexico's private banking system to prevent this bankruptcy.
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1999 Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Act was passed in 1999. It gave the market more control by removing banking, insurance, and security barriers. However, this meant less competition and less privacy.
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