The US Banking Industry

Module 13 Assignment 2

1791 Bank of the US

Congress gave a charter in 1791 signed by George Washington to start a bank promoted by Federalist Alexander Hamilton which collected fees to pay for the America Revolution. The bank went away because states opposed the idea of giving the federal government that much power.
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1816 Second Bank of the US

The second bank of the US started in 1816, and was stopped because it didn't regulate state banks. State banks were using their own forms of currency and it wasn't working well between states.
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Civil War and Printing Currency

During the Civil War there were so many types of currency that it couldn't be kept up with. Then when the south's currency became irrelevant it created a whole other set of issues.

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1863 National Banking Act

This allowed banks to have a state or federal charter.
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1913 Federal Reserve Act

This created the National Bank.

Below is a news article from when it occurred.

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1930's Great Depression and Banking

FDR made a bank holiday where banks closed and could only reopen if proved financially capable.

This photo is from when people were rushing to the bank to try to get their money out when they knew the system was soon to collapse and their money would be lost.

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Glass-Steagall Banking Act

This created the Federal Deposit Insurance Corporation which means that if a bank goes under, your money will still be provided.
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1970's and Banking

Congress let back on restrictions on banks and interest rates raised.
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1982 and Banking

Congress allowed banks to make high risk loans and investments and when all of it failed the FDIC had to pay for the money lost.
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The 1999 Gramm-Leach-Bliley Act

This allowed banks to have more control over banking, insurance, and security. However, there is less competition, the possibility of a universal bank, and the sharing of information which lessens citizen's privacy.
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