Banking Industry
Ryan Powers
1791
Bank of the US
- This bank collected fees and made payments on behalf of the federal government
- State banks opposed the Bank of the US because they thought it gave too much power to the national government
1816
Second Bank of the US
- State banks were issuing their own currency
- Federal government didnt print paper until the Civil War
- Failed because it didnt regulate state banks or charter any other bank
1913
Federal Reserve Act
- Under President Wilson's administration
- Created our National Bank
1930s
The Great Depression
- Caused banks to collapse
- FDR declared a bank holiday where banks closed
- Banks were only allowed to reopen if they provided they were financially stable
1933
Glass-Steagall Banking Act
- Established the Federal Deposit Insurance Corporation and this ensured that if a bank goes under, you would still have your money
1970s
Congress Relaxes restrictions on banks
1982
Congress allows S&L banks to make high risk loans and investments
- investments went bad
- banks failed
- federal government had to give investors their money back
- federal government debt was raised to $200 billion
- FDIC took over the S&L
1999
Gramm-Leach-Bliley Act
- Allows banks to have more control over banking, insurance and securities
- Cons include: less competition, may form an universal bank; may lead to more sharing of information which would conclude a reduction of privacy