Banking Industry in the US

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1791 Bank of the US

The First Bank of the United States was needed because the government had a debt from the Revolutionary War. This bank collected fees and made payments on behalf of the federal government.
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1816 Second Bank of the US

Chartered in 1816, failed because it didn't regulate state banks or charter any other bank.
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Civil War (printing currency)

The Federal government didn't print paper currency until the Civil War. To pay for the war, the Confederate government issued paper currency.
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1863/1864 National Banking Act

Banks could have a state or federal charter, known as dual banking. Encouraged Development of a national currency.
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1913 Federal Reserve Act

Enacted on December 23, 1913. Signed into law by President Woodrow Wilson. This created the Federal Reserve. Intended to establish a form of economic stability.The Federal Reserve system is the central banking system of the USA.
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Great Depression

The Great Depression caused banks to collapse. FDR declared a bank holiday where the banks were closed, and were only allowed to reopen if they proved they were financially stable.
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Glass-Steagall Banking Act 1970’s

Established the Federal Deposit Insurance Corporation. Ensured that if a bank went under, people would still have their money.


Congress allows S&L banks to make high risk loans and investments. These investments went bad and banks failed. The Federal government then had to give investors their money back and the government was $200 Billion in debt. The FDIC then took over the S&L.
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1999 Gramm-Leach-Bliley Act

This Act allowed banks to have more control over banking, insurance, and securities. A problem with this was less competition, it could form a universal bank and lead to less privacy.