Module 13 Lesson 2
By Valerie Palacios
Timeline
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