Module 13 Lesson 2
1791 Bank of the US- President Washington signed a charter from congress to create this bank. It could collect fees and make payments for the federal government. State banks didn't like it because they thought it gave the government too much power, so it went away.
1816 Second Bank of the US- This bank was chartered in 1816. It didn't work because it didn't regulate state banks or charter other banks. State banks began making their own kind of money.
Civil War (printing currency)- The government didn't start making paper money until the civil war.
1863 National Banking Act- This act helped create a system of national banks, created a constant national currency, and helped finance the civil war.
1913 Federal Reserve Act- Created the Federal Reserve.
1930’s Great Depression (regarding banking)- The great depression was when the economy was terrible and banks started to collapse. Franklin D Roosevelt declared a “bank holiday” where all the banks closed and were only allowed to reopen if they could prove they had enough money to do so.
Glass Steagall Banking Act- Created the Federal Deposit Insurance Corporation, so that if a bank collapses, you don't lose the money you put in it.
1970’s (regarding banking)- Congress begins to relax some of its restrictions on banks.
1982 (regarding banking)- Banks were making high risk investments and loans. When the investments failed, the banks went under and the federal government ended up in debt to the people. They owed about $200 billion dollars.
1999 Gramm Leach Bliley Act- This act gave banks more control over things like banking, insurance, and securities. Unfortunately, it may also lead to less competition and less privacy.