Time line of Banking in America
Only from our failures can we predict what lies ahead
The First and Second US Banks 1790-1816
When the country was being founded the idea of banks sparked conversation. With a bank the U.S would be able to start the control of money. These failed due to lack of support by the states. After this time there was no currency for the U.S, everyone printed money.
The Idea of National Banking 1860-1930
During this time there was the National banking act and the federal reserve act. This allowed banks to operate in a more public view and allowed the government a say in what the banks did. When things failed FDR started a "bank holiday" which closed banks that could not support themselves.
When the banks failed many people lost their money. This was the need for the FDIC which is an insurance that all banks must have for everyone that banks for them. This helps when banks fail people will get their money back. It has been used during the S&L failure when high risk loans went bad and people needed to be payed back.
Gramm-Leach-Bliley act 1999
This made banks have more insurance and a safer banking process but also gives banks less compositions for each other and less privacy. There is a less of a need for a lot of banks.