Module 13 lesson 2 assignment

Timeline

1791 Bank of the US

It was signed by George Washington, This bank collected fees and made payments on behalf of the federal government, This Bank went away because state banks opposed it; thought it gave too much power to national government.

1816 Second bank of the US

Failed because it didn't regulate state banks or charter any other bank, State banks were issuing their own currency.

Civil War

Federal government didn't print paper currency until the Civil War.

1863 National Banking act

Banks could have a state or federal charter, and established a system for national banks.

1913 Federal Reserve act

Opened a national bank and it became the central banking system of the Untied States of America

1930’s Great Depression

FDR declared a “bank holiday” where banks closed and Only allowed to reopen if they proved they were financially stable.

Glass-Steagall Banking Act, 1970’s

Established the Federal Deposit Insurance Corporation and ensures that if a bank goes under, you still have your money.

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, The cons are less competition, may form a universal bank; may lead to more sharing of information.