Lesson 2 Assignment Timeline

by Ashley Sepulveda- Clayborn

1791

The Bank of the US received a charter in 1791 from Congress; signed by President Washington

This bank collected fees and made payments on behalf of the federal government.

Bank went away because state banks opposed it; thought it gave too much power to national government

1816

Second Bank of the US was chartered in 1816.

Failed because it didn’t regulate state banks or charter any other bank

State banks were issuing their own currency

Federal government didn’t print paper currency until the Civil War

1863

National Banking Act

Banks could have a state or federal charter (duel banking)

1913

Federal Reserve Act

National bank was created

1930s

Great Depression caused banks to collapse

FDR declared a “bank holiday” where banks closed

Only allowed to reopen if they proved they were financially stable

Glass-Steagall Banking Act

Established the Federal Deposit Insurance Corporation

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: $200 billion

The FDIC took over the S&L

1999

Gramm-Leach-Bliley Act

Allows banks to have more control over banking, insurance and securities

Cons: less competition, may form a universal bank; may lead to more sharing of information (reduction of privacy)

ALL INFORMATION IS PROVIDED FROM PRESENTATION IN THE 13th MODULE