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.
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.
Printing currency (Civil War)
- National Bank Note Company of NY printed a million dollars in confederate bills earlier in 1861.
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.
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.
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.
Glass- Steagall Banking Act
- passed by congress in 1933.
- prohibits commercial banks from engaging in the investment business.
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
1982 regarding banking
- new banking act passed.
- lots of Latin America debt.
- many Latin America countries borrowed money from international creditors.
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- repealed the Glass- Steagall Act.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.