Banking Industry Changes
In the U.S
1791 Bank of the U.S
-Collected fees and payments for the Federal Government
-Gave the National Government too much power
1816 Second U.S Bank
-State banks issued their own currency
-failed because it could not regulate state banks or charter any others
Civil War [Printing Currency]
-Beginning of paper currency
1863 National Banking Act
-Banks were allowed to have a State/Federal charter AKA duel-banking
1913 Federal Reserve Act
-Formation of the Central bank
The Great Depression
-On holidays banks were given "bank holidays"- where they were closed; only financially stable banks were allowed to reopen.
The Glass-Steagall Banking Act
-Established the Federal Deposit Insurance Corporation that promised a person would still have their bank account amount regardless of what happened.
1970s
-Banking restrictions relax
1982
-Government allows S&L Banks to make high-risk loans
-Banks failed, investors received their money back
-Federal Government was $200 billion in debit
1999 Gram-Leach-Bliley Act
-Banks could have more control over security, banking, and insurance
-Privacy reduction