Timeline Regarding Banking

1791-1999

1791

  • First Bank of the United States is created
  • Made with the goal of having a national bank
  • It's Charter expired in 1811
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1816

  • Second Bank of the United States is created
  • Acted as the government's bank
  • It's Charter expired in 1836
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1861

  • The United States issued it's first paper money during the Civil War
  • Some of these Dollar Bills were called "Greenbacks" which were payed out to soldiers
  • United States notes began circulation in 1862, but stopped being issued in 1971
  • Very few notes introduced during the Civil War are still in circulation, and none are still printed
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1863

  • The National Banking Act of 1863 was introduced
  • It's purpose was to help create a nation banking system
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1913

  • The Federal Reserve Act
  • Created the Federal Reserve System
  • In 1914 the very first Federal Reserve Notes were released, which are the same notes still used today
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1930

  • Right after the start of the Great Depression, many banks started to fail
  • The Panic of 1930 happened due to large amounts of money going out of circulation
  • People made deposit runs to try and get their money back
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1933

  • The Glass-Steagall Banking Act
  • Made up of 4 parts of the U.S Banking act of 1933
  • Banks that were members of the Fed were given restrictions on the types of securities they could offer.
  • Repealed in 1999
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1970

  • Saw the Bank Secrecy Act
  • Enacted to prevent illegal behavior
  • Required banks to keep more records for things such as checks
  • Banks have to file Currency Transaction Reports for transactions involving more than $10,000
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1980

  • Around the early 1980s there was an economic recession effecting the whole world
  • The DIDMCA had removed many restrictions on banks, due to this, banks were making large investments and lending lots of money
  • This caused a high rate of bank failures
  • Even bigger was the S&L crisis
  • Almost 1/3 of Savings and Loan corporations failed
  • The Crisis did not end until the mid-90s
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1999

  • Gramm-Leach-Biley Act
  • Repealed the Glass-Steagall Banking Act
  • Created new laws that banks must follow
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