Timeline of the Banking Industry
1791 Bank of the US
President Washington signed the charter for the Bank of the US in 1791. The bank collected fees and made payments on behalf of the federal government. State banks opposed the Bank of the US, thinking it gave too much power to the national government.
1816 Bank of the US
The Second Bank of the US failed because it didn't regulate state banks or charter any other bank.
Printing Currency in the Civil War
During the Civil War was the first time the federal government printed paper currency. Before, state governments would print their own currency.
1863 National Banking Act
The National Banking Act created dual banking, where banks could have a state or federal charter.
1913 Federal Reserve Act
The 1913 Federal Reserve Act created a national bank.
The 1930's Great Depression
During the Great Depression, banks collapsed.
Glass-Steagall Banking Act
This Act established the FDIC, which ensures that if a bank goes under, you still have your money.
In the 70's, Congress relaxes the restrictions on banks.
In 1982, Congress allows S&L banks to make high risk loans and investments. However, investments went bad and the banks failed. The federal government had to give investors their money back, resulting in a $200 million federal government debt. The FDIC then took over the S&L.
1999 Gramm-Leach-Bliley Act
This act allowed banks to have more control over banking, insurance, and securities. However, this resulted in less competition, the formation of a universal bank, and a reduction of privacy.