Banking Industry US Timeline

by Malecia Roberts

-1791 First Bank of the US

The Bank of the United States was needed because the government had a debt from the Revolutionary War, and each state had a different form of currency. Alexander Hamilton conceived of the bank to handle the colossal war debt and to create a standard form of currency.

-1816 Second Bank of the US

Second Bank was founded after the War of 1812 when it realized that without a national bank it would be impossible to fund another war such as the one just fought. William Strickland, one of the first great American architects designed the building, and Nicholas Biddle was the first president of the bank.

-Civil War (printing currency)

The war began when the Confederates bombarded Union soldiers at Fort Sumter, South Carolina on April 12,1861. The war ended in Spring 1865.

-1863 National Banking Act

The National Bank Act of 1863 was designed to create a national banking system, float federal war loans, and establish a national currency. Congress passed the act to help resolve the financial crisis that emerged during the early days of the American Civil War (1861-1865).

-1913 Federal Reserve Act

The Federal Reserve Act was enacted in response to a series of financial crises. The intent of the Act was to create a degree of financial stability. The Act empowers the Fed to regulate and supervise banks and develop and implement monetary policy.

1930's Great Depression (regarding banking)

The stock market crash of October 1929 left the American public highly nervous and extremely susceptible to rumors of impending financial disaster. Consumer spending and investment began to decrease, which lead to a decline in production and employment. The Great Depression was bank runs which large numbers of anxious people withdrew their deposits in cash, which forced banks to owe loans and often leading to bank failure.

-Glass-Steagall Banking Act

An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment banking business. The Act was passed as an emergency measure to counter the failure of almost 5,000 banks during the Great Depression. The Glass- Steagall lost its potency in subsequent decades and finally repealed in 1999.

-1970's (regarding banking)

The fundamental functions of a commercial bank during the past two centuries have been making loans, receiving deposits, and leading credit either in the form of bank notes or of "created" deposits. The banks in which people keep their checking accounts are commercial banks.

-1982 (regarding banking)

A bank deals in money and money substitutes: it also provides a range of financial services. It borrows or receives deposits from firms, individuals,and sometimes governments. In general, it covers its expenses and earns its profits by borrowing at one rate of interest and lending at a higher rate.

-1999 Gramm-Leach-Bliley Act

A regulation that Congress passed on November 12, 1999, which attempts to update and modernize the financial industry. The main function of the Act was to repeal the Glass Steagall Act that said banks and other financial institutions were not allowed to offer financial services, like investments and insurance- related services, as part of normal operations.
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