United States Banking Timeline
By: Kirsten McLeod
1791 - Bank of the United States
The Bank of the US received a charter in 1791 from Congress and was signed by President Washington. This bank collected fees and made payments on behalf of the federal government. State banks opposed this bank because they thought it gave too much power to national government which was a big issue at this time.
1816 - Second Bank of the United States
The Second Bank of the United States was chartered in 1816, it failed because it didn’t regulate state banks or charter any other bank. State banks were issuing their own currency, and the Federal government didn’t print paper currency until the Civil War
1863 - National Banking Act
1913 - Federal Reserve Act
1930’s - Great Depression
The Great Depression caused banks to collapse, and the Federal Reserves declared a “bank holiday” where banks closed and only allowed to reopen if they proved that they were financially stable.
1933 - Glass-Steagall Banking Act
The Glass-Steagall Banking Act established the Federal Deposit Insurance Corporation, which ensures that if a bank goes under, you still have your money that you put in it.
Congress allows S&L banks to make high risk loans and investments. The investments went bad, and the banks began to fail the Federal government had to give investors their money back. The Federal government fell into a debt of $200 billion, and the FDIC took over the S&L.