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
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1863

National Banking Act


  • Banks could have a state or federal charter

1913

Federal Reserve Act


  • Under President Wilson's administration
  • Created our National Bank
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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
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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
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