Module 13 Lesson 2

By Valerie Palacios


1791 Bank of the US:

The Bank of the US received a charter

1816 Second Bank of the US:

Second Bank failed because it didn't regulate state banks or charter any other bank

Civil War (printing currency):

During the civil war the federal government began printing national currency discontinuing the print state currency.

1863 National Banking Act:

Banks could have a state or federal charter

1913 Federal Reserve Act:

National bank

1930’s Great Depression (regarding banking):

caused banks to collapse ,FDR declared a “bank holiday” where banks closed

Only allowed to reopen if they proved they were financially stable

Glass-Steagall Banking Act:

Established the Federal Deposit Insurance Corporation, ensures that if a bank goes under, you still have your money

1970’s (regarding banking):

Congress relaxes restrictions on banks

1982 (regarding banking):

Congress allows S&L banks to make high risk loans and investments; investments went bad, banks failed; federal government had to give investors their money back; federal government debt: $200 billion; the FDIC took over the S&L

1999 Gramm-Leach-Bliley Act:

Allows banks to have more control over banking, insurance and securities

Cons: less competition, may form a universal bank; may lead to more sharing of information , which caused the reduction of privacy