Banking Industry Through Time
1791 Bank of the US
The first bank of the United States was chartered February 25, 1791. This means that it got its authorization to open and begin business in the year 1791. Also the charter that they recieved was allowing they to have business for twenty years.This authorization was given by congress and officially signed by president Washington. Then the bank failed because the state banks felt that is gave the federal government far too much power and they were apposed to it.
1816 Second Bank of the US
Then in February 1816 the Second Bank of America opened. This bank however was not chartered teh same way instead it was "authorized Hamiltonian National Bank in the United States during its 20-year charter from February 1816 to January 1836". Then the bank failed due to the fact that it was incapable of chartering or opening other banks as well as regulating the state banks that are already under control of the America Bank.
Civil War (printing currency)
During the Civil War which lasted from 1861-1865 There was something called the Legal Tender Act. This Act occurred in 1862 and is the reason why currency printing began in the Civil War. This Act allowed for the printing or "Greenbacks" this type of money was not the same as regular currency. That is because the county did not have enough gold to back up the amount of money we were printing. So this money known as the "Greenbacks" was not backed up by gold. however you were still able to pay your bills with as well as making purchases at local stores.
1863 National Banking Act
The National Banking Act which was established in the year 1863. This Act was created to allow banks to have dual banking. This means that the bank could receive a charter from both the state and federal banks. The goals of this act was that they could fix the financial and economical crisis that was caused during the beginning of the America Civil War.
1913 Federal Reserve Act
The Federal Reserve Act that was established on December 23, 1913. It was created to try and bring stability. Their plan was to introduce a central bank to try and make the economy more stable.
1930’s Great Depression (regarding banking)
The Great Depression was really tough on the banks. In fact in the 1930's the Great Depression caused the banks to collapse. This is because the great depression caused a tough time. People were borrowing more money than they could pay back. This caused many banks to have to close. Then a banking "Holiday" was established so that banks could try to reopen.
Glass-Steagall Banking Act
The Glass-Steagall Banking Act was established in 1933 when Roosevelt sign the bill on June 16th. The purpose of this act was to try and regain peoples trust in the banks. This act is also what created the Federal Deposit Insurance Corporation. This is basically insurance that the people would get there money. It was promising the people that if they invested their money or put it in a savings account in the bank they would receive their money back if collapses or closes. all of this was to try and recover the trust that the Great Depression caused the banks to lose. Once people lost their money they no longer trusted putting their money in the bank and this was their way of trying to make up for it.
1970’s (regarding banking)
Prior to and up until the 1970's there were a lot of restrictions on banks. These include interest rates, the maximum about that someone could put in their account or take out, and so much more. Then in the 1970's the Congress decided to relax a little on these restrictions. They made some of them go away and modified some other ones. This was all to improve the quality of the banking world.
1982 (regarding banking)
In July of 1982 a crisis occurred that caused many banks to fail. This is because the Congress gave the S&L banks permission to both high risk loans and investments. In the long run this did not end well for them and the investments went band. This then caused all the banks involved to fail.
The 1999 Gramm-Leach-Bliley Act
The 1999 Gramm-Leach-Bliley Act was established on November 12 1999. The hopes were that this act was going to give the banks more control. It world allow them to control things like "banking, insurance, and securities".