Changes to banking industry in U.S

Module 13 Lesson 2 Mastery Assignment

1791 Bank of the US

  • needed because the US had a debt from the Revolutionary War, and each state had a different form of currency.
  • first charter was drafted by Congress and signed by Washington in 1791.
  • congress voted to abandon the bank and its charter in 1811.
  • originally housed in Carpenters' Hall from 1791 to 1795.
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1816 Second Bank of the US

  • chartered in 1816 with the same responsibilities as the first bank.
  • chartered by many of the same congressmen who refused to charter the first bank.
  • reason for charter of the second bank was the War of 1812, the US experienced inflation and had difficulty financing military operations.
  • initially in Carpenters' Hall but had branches throughout the nation.
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Printing currency (Civil War)

  • National Bank Note Company of NY printed a million dollars in confederate bills earlier in 1861.
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1863 National Banking Act

  • established a system of nationally chartered banks and required the currency issued by them to be backed by the government securities.
  • amended to also required the taxation of state currencies but not national bank bills.
  • produced the intended effect of creating a uniform national currency.
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1913 Federal Reserve Act

  • an act of Congress that created and set up the Federal Reserve System.
  • signed into law by President Woodrow Wilson.
  • passed the House on September 18, 1913
  • passed the Senate on December 18, 1913.
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1930s Great Depression

  • a worldwide economic depression, it affected a lot of people.
  • country affected the most was Germany.
  • people become homeless and had to beg for money on the streets.
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Glass- Steagall Banking Act

  • passed by congress in 1933.
  • prohibits commercial banks from engaging in the investment business.
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1970s regarding banking

  • very serious.
  • while working there was no talking or laughing
  • while learning, the manager was called if a mistake was made.
  • employees started as cashiers.
  • everyone has to smartly dress
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1982 regarding banking

  • new banking act passed.
  • lots of Latin America debt.
  • many Latin America countries borrowed money from international creditors.
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1999 Gramm-Leach-Bliley Act

  • enacted on November 12, 1999.
  • investment banks, commercial banks, insurance companies, and secretive firms were allowed to unite.
  • repealed the Glass- Steagall Act.
  • signed in law by President Bill Clinton.
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