Timeline Of Bank Events

By Ryan Morgan

1791 Bank of the US Description

Proposed by Alexander Hamilton, the Bank of the United States was made in 1791 to serve as a repository for federal funds and as the government’s fiscal agent. Although it was well managed and profitable, critics said that the First Bank’s fiscal caution was constraining economic development, and its charter was not renewed in 1811.

1816 Second Bank of the US

he Second Bank of the U.S. was chartered in 1816 with the same responsibilities and powers as the First Bank. However, the Second Bank would not even enjoy the limited success of the First Bank. Although foreign ownership was not a problem (foreigners owned about 20% of the Bank's stock), the Second Bank was plagued with poor management and fraud.

Civil War (printing currency)

Paper money during the Civil War. To pay for the war, the Confederate government issued a vast array of paper currencies — at least seventy different types of currency, totaling more than 1.5 billion dollars, an incredible sum at that time.

1863 National Bank Act

The National Bank Act of 1863 was designed to create a national banking system, float federal war loans, and establish a national currency. Congress passed the act to help resolve the financial crisis that emerged during the early days of the American Civil War (1861–1865).

1913 Reserve Act

The 1913 U.S. legislation that created the current Federal Reserve System. The Federal Reserve Act intended to establish a form of economic stability through the introduction of the Central Bank, which would be in charge of monetary policy, into the United States.

1930's Great Depression (involving banking)

As the economic depression deepened in the early 30s, and as farmers had less and less money to spend in town, banks began to fail at alarming rates. During the 20s, there was an average of 70 banks failing each year nationally. After the crash during the first 10 months of 1930, 744 banks failed – 10 times as many.

Glass-Steagall Banking Act

An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment banking business.The Act was passed as an emergency measure to counter the failure of almost 5,000 banks during the Great Depression.

1970’s (regarding banking)

It's the 1970s, and the stock market is a mess. It loses 40% in an 18-month period, and for close to a decade few people want anything to do with stocks. Economic growth is weak, which results in rising unemployment that eventually reaches double-digits. The easy-money policies of the American central bank, which were designed to generate full employment, by the early 1970s, also caused high inflation.

1982 (regarding banking)

The early 1980s recession describes the severe global economic recession affecting much of the developed world in the late 1970s and early 1980s.

The United States and Japan exited the recession relatively early, but high unemployment would continue to affect other OECD nations through to at least 1985

1999 Gramm-Leach-Bliley Act

Requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.