Banking Industry in the U.S.A.
by: Nita Wage
Bank of the US
National bank formed by the US Congress on February 25, 1791. Located in Philadelphia, Pennsylvania within Independence National Historical Park, it is now a National Historic Landmark.
Second Bank of the US
Formed in 1816, this bank handled all fiscal transactions for the U.S. Government and was accountable to Congress and the U.S. Treasury. Authorized as Hamiltonian National Bank, this bank was in order for 20 years- 1816-1836.
Civil War
Because of the coinage shortage during the civil war, people started using paper money during this time. The first official paper currency was called Demand Notes and came in $5, $10, and $20 increments in 1861.
National Banking Act
1863-1864 two United States acts established a system of national banks. Developed national currency and shaped todays national banking system.
Federal Reserve Act
Established a form of economic stability in 1913. One of the most influential laws concerning the United States financial system.
Great Depression
It's debatable whether bank failures caused the Great Depression or the Great Depression cause bank failure.Either way, the 1930s was a tough time for both banks and the people of the United States.
Glass-Steagall Banking Act
Two members of Congress put their names together to create the Glass-Steagall Act. This act separated investment and commercial banking activities in 1933.
1970s
Banking was not going well during this time. For example, the secondary banking crisis of 1973-1975. Caused many banks to go bankrupt.
Gramm-Leach-Bliley Act
Also known as the Financial Services Modernization Act repealed part of the Glass-Steagall act of 1933 in 1999 removing barriers in the market among banking companies.