Changes In US Banking Timeline

By: Spencer Lynch

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First Bank of the US - 1791

-The First Bank of the US both collected fees and made payments for the government

-The bank was ended because state banks felt that it had too much power

-Macula vs. Maryland when Maryland tried to tax the national bank

-Government deserved a national bank

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Second Bank of the US - 1816

-The Second Bank of the US didn't regulate state banks or charter other banks

-Failed because many states were printing their own currency

-Government didn't print currency until the civil war

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Civil War - April 12, 1861 - May 9, 1865

-The United States had a national currency called greenbacks

-Back by the government's credibility not by gold or silver

-South had 70+ types of currency which were basically I.O.U.s

-Caused inflation and contributed to the loss in the civil war

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The National Banking Act - 1863

-The National Banking Act created dual banking allowing banks to have either state or federal charter

-Allowed separation between federal and state banks

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The Federal Reserve Act - 1913

-Created the nations central bank we still have today

-The Federal Reserve

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Great Depression Causes Collapse of Banks - 1930's

-Great depression caused by massive amount of bank failures

-Bank holiday closed all nations banks and allowed only stable banks to reopen

-Glass-Steagall Banking Act

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Glass-Steagall Banking Act - Developed over time, initialized in 1930's

-Established FDIC (Federal Deposit Insurance Corporation)

-Protected money in banks up to $100,000

-Caused increase in bank trust

-Separated commercial and investment banking

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Congress Beings To Relax Restrictions On Banking - 1970's

-Congress beings to relax the restrictions on banks allowing them to make more risky moves such as putting out all their money as loans

-Contributed to economy downfall in 2000's

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Bank Changes - 1982

-Congress allowed saving and loan banks to make risky investments

-Banks failed

-Government had to reimburse investors 200B

-FDIC takes over the savings and loans banks

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Gramm-Leach-Bliley Act - 1999

-Ended Glass-Steagall Act

-Banks given more control over banking, insurance, and securities

-Non-commercial banks could act as investment banks