The Worlds Banking history

1791First Bank of the US

The First 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.

1816 Second Bank of the US

The Second Bank of the U.S. was chartered in 1816 with the same responsibilities and powers as the First Bank. However, the Second Bank would not even enjoy the limited success of the First Bank. Although foreign ownership was not a problem (foreigners owned about 20% of the Bank's stock), the Second Bank was plagued with poor management and outright fraud. The Bank was supposed to maintain a "certain currency" to keep its deposit ratio stable at about 20 percent. Instead the ratio bounced around between 12% and 65%.

Civil War (printing currency)

To pay for the war, the Confederate government issued a vast array of paper currencies — at least seventy different types of currency, totaling more than 1.5 billion dollars, an incredible sum at that time. Making things even more confusing, state governments issued their own currencies — as did banks, insurance companies, and businesses.
None of this paper money could be redeemed, or traded for, gold or silver — as was common in the early nineteenth century. The Confederate government had no gold or silver to make coins. Instead, Confederate paper money was like a loan — a promissory note or promise to pay at a later time. At the start of the war, when southerners expected to win the war, they were willing to trust that their paper dollars would continue to hold value.

1863 National Banking Act

Despite these private or state-sponsored efforts at reform, the state banking system still exhibited the undesirable properties enumerated earlier. The National Banking Acts of 1863 and 1864 were attempts to assert some degree of federal control over the banking system without the formation of another central bank. The Act had three primary purposes: 1. create a system of national banks, 2. to create a uniform national currency, and 3. To create an active secondary market for Treasury securities to help finance the Civil War (for the Union's side).

1913 Federal Reserve Act

The 1913 U.S. legislation that created the current Federal Reserve System. The Federal Reserve Act intended to establish a form of economic stability through the introduction of the Central Bank, which would be in charge of monetary policy, into the United States.

1930’s Great Depression (regarding banking)

The Great Depression contained several banking crises consisting of runs on several banks from 1929 - 1933; some of these were specific to regions of the U.S. Banking scares began in the Northern region of the South in November 1930, one year after the stock market crash, triggered by the collapse of a string of banks in Tennessee and Kentucky, which brought down their correspondent networks. In December, New York City experienced massive bank runs that were contained to the many branches of a single bank. Philadelphia was hit a week later by bank runs that affected several banks, but were successfully contained by quick action by the leading city banks and the Federal Reserve Bank.

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 Glass-Steagall Act was sponsored by Senator Carter Glass, a former Treasury secretary, and Senator Henry Steagall, a member of the House of Representatives and chairman of the House Banking and Currency Committee. 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 was finally repealed in 1999.

1970’s (regarding banking)

The 1973–1974 bear market was a bear market that lasted between January 1973 and December 1974. Affecting all the major stock markets in the world, particularly the United Kingdom, it was one of the worst stock market downturns in modern history.[2] The crash came after the collapse of the Bretton Woods system over the previous two years, with the associated 'Nixon Shock' and United States dollar devaluation under the Smithsonian Agreement. It was compounded by the outbreak of the 1973 oil crisis in October of that year. It was a major event of the 1970s recession. This had an affect on the Fed in one way or another throughout the 1970s

1982 (regarding banking),

According to information from the Federal Deposit Insurance Corporation's (FDIC) Division of Research and Statistics, between 1980-1994, a total of 1,617 commercial and savings banks failed. $206.179 billion in assets were held in those failed institutions.In another study using FDIC data, 1,043 thrifts failed or were otherwise resolved from 1986-1995. Those institutions represented assets totaling $519 billion. The banking crisis of the 1980s was therefore a two-headed beast – one head related to the failure of savings and loans (the S&L crisis), which represented the bulk of the assets and number of banks, and the other linked to the failure of large commercial banks.

The 1999 Gramm-Leach-Bliley Act

The Gramm-Leach-Bliley Act requires financial institutions – companies that offer consumers financial products or services like loans, financial or investment advice, or insurance – to explain their information-sharing practices to their customers and to safeguard sensitive data.