Bank Timeline

The History of Banks

1791

In 1791, The Bank of the US received a charter from Congress. The charter was signed by President Washington. The Bank of the US collected fees and made payments on behalf of the federal government. Banks eventually went away because state banks opposed this. They felt it gave too much power to the national government.

1816

In 1816, the Second Bank of the US was chartered. This bank failed because it didnt regulate state banks or charter any other bank.

Civil War

The printing of paper currency officially began during the Civil War. The Federal Government began this process.

1863

National Banking Act was passed. This act stated that banks could have a state or federal charter, or also known as dual banking.

1913

Federal Reserve Act was passed. This act was about the National Bank.

1930s

During this time period was the "Great Depression." This caused majority of banks throughout the whole country to collapse. FDR declared a "bank holiday" for all banks, closing them. Banks were only allowed to reopen if they proved that they were financially stable.

Glass-Steagall Banking Act

This act established the Federal Deposit. This ensured that if a bank goes under, you still have your money.

1982

Congress allowed Savings and Loan Associations to make high risk loans and investments. In the end, investments went bad, and banks failed.

1999

Gramm-Leach-Bliley Act was passed. This allowed banks to have more control over banking, insurance, and securities. The downside of this, was there was less competition, which may form a universal bank, and could lead to more sharing of information. This reduces the people's privacy.