Bank Acts

Timeline type of flyer

1930’s Great Depression (regarding banking)

1970’s (regarding banking)

In the 1970's, the Glass-Steagall Act grew controversial when the banks complained that they would lose customers to other companies unless they provided more services. The government then allowed more freedoms to banks to offer more financial services. Many people were able to get S&L financing for buying their homes and the interest rates paid on deposits at S&Ls were kept low. However, plenty of Americans put their money in them because insurance on deposits made it a safe place to invest.
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1982 (regarding banking)

In 1982, the federal requirements of interest rates on savings accounts slipped out of focus, and checking accounts were then offered at any bank. The deregulation of the banks eroded the distinction between commercial banks and savings banks. Congress allowed S&L (saving and loans) banks to make high risk loans and investments. Many S&L banks took advantage of the lowered regulations and gave out more money and loans than they were financially able to. The investments went bad, banks failed, the federal government had to give investors their money back, the federal government debt rose to $200 billion, and the FDIC took over the S&L. Steps taken to resolve the crisis included abolishing the independence of S&L banks and getting rid of the Federal Home Loan Bank Board that had been in charge of supervising the S&L.
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