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