US Bank History

Going over the basics of how we went from then to now.

1791 Bank of The US

The first bank was located in Philadelphia. Pennsylvania. The bank was established as a means to relieve the amount debt after the revolutionary war, to create a standard currency of bills and coins, and to have a national bank established to support the needs of the new nation.

1816 Second Bank of the US

Also located in Philadelphia, Pennsylvania, it held the same duties as the first. The bank was chartered by Andrew Jackson and would last 20 years. Groups of people -namely the Old Republicans- opposed it, so in 1836 it was challenged and brought to an end. Without a national bank to regulate currency the states began making their own. Which, you can imagine, becomes difficult when there's trade between any two states.

What Happened to the Banking System During the Civil War?

When the Civil war broke out, more money was needed to support the war efforts. The US found itself in even more debt from the costs and was in need of a better system of money. Having different currency state-to-state made trade a hardship, so they attempted to make currency that would represent a value and could be used, however they needed to be backed by gold and used as a temporary solution. These were known as 'greenbacks'.

It's An Act

Gramm-Leach-Bliley Act of 1999

Ended Glass-Steagall Act and took away other regulations so the US could have a system more suited to its time. This, however, increased the risk of having too much availability to personal information.