Timeline of the Banking Industry
1791: First Bank of the U.S.
1816: Second Bank of the U.S.
Civil War (Printing Currency)
To pay for the war, the Confederate government issued a lot of paper currencies— at least 70 different types of currency, totaling more than 1.5 billion dollars, which was an extraordinary amount of money at that time. As governments struggled to meet expenses by printing more and more money, the amount of paper money was far beyond the value of the goods available to be bought. Making things even more confusing, state governments issued their own currencies. None of this paper money could be redeemed, or traded for, gold or silver. The Confederate government had no gold or silver to make coins. Instead, Confederate paper money was like a loan.
1863 National Banking Act
1913 Federal Reserve Act
1930s Great Depression
The Glass-Steagall Act was an act the U.S. Congress passed in 1933, which did not allow commercial banks to participate in the investment banking business. The Act was passed as an emergency measure to solve the failure of almost 5,000 banks during the Great Depression. The Glass-Steagall lost its effectiveness later in the decades and was finally repealed in 1999. Apart from separating commercial and investment banking, the Glass-Steagall Act also created the Federal Deposit Insurance Corporation, which guaranteed bank deposits up to a specified limit. The Act also created the Federal Open Market Committee and introduced Regulation Q, which prohibited banks from paying interest on demand deposits and capped interest rates on other deposit products.
Bank Secrecy Act of 1970
Savings & Loan Crisis of 1982
The savings and loan crisis of the 1980s and 1990s (commonly called the S&L crisis) was the failure of 1,043 out of the 3,234 savings and loan associations in the United States from 1986 to 1995. The Federal Savings and Loan Insurance Corporation (FSLIC) closed or otherwise resolved 296 institutions from 1986 to 1989 and the Resolution Trust Corporation (RTC) closed or otherwise resolved 747 institutions from 1989 to 1995. A savings and loan or "thrift" is a financial institution that accepts savings deposits and makes mortgage, car, and other personal loans to individual members. By 1995, the Resolution Trust Corporation (RTC) had closed 747 failed institutions nation-wide, worth a total possible value of between $402 and $407 billion, with an estimated cost to American taxpayers of $160 billion. In 1996, the General Accounting Office estimated the total cost to be $160 billion, including $132.1 billion taken from taxpayers.
Gramm-Leach-Bliley Act of 1999
"First Bank of the United States." Ushistory.org. Independence Hall Association, n.d. Web. 26 Apr. 2015.
"6.5 Paper Money in the Civil War." Paper Money in the Civil War. N.p., n.d. Web. 26 Apr. 2015.
"National Banking Acts of 1863 and 1864." N.p., n.d. Web. 26 Apr. 2015.
"Federal Reserve Act (1913)." N.p., n.d. Web. 26 Apr. 2015.
"Bank Secrecy Act." Wikipedia. Wikimedia Foundation, n.d. Web. 26 Apr. 2015.
"Gramm-Leach-Bliley Act of 1999 (GLBA) Definition | Investopedia." Investopedia. N.p., 13 Aug. 2006. Web. 26 Apr. 2015.