Module 13 lesson 2 assignment
Timeline
1791 Bank of the US
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.
1863 National Banking act
Banks could have a state or federal charter, and established a system for national banks.
1913 Federal Reserve act
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.