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
1816
- Second Bank of the United States is created
- Acted as the government's bank
- It's Charter expired in 1836
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
1863
- The National Banking Act of 1863 was introduced
- It's purpose was to help create a nation banking system
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
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
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- Repealed in 1999
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
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
1999
- Gramm-Leach-Biley Act
- Repealed the Glass-Steagall Banking Act
- Created new laws that banks must follow