Module 13 Lesson 2

Banking Industry in the U.S.

1791 Bank of the US

  • Started when Washington was President
  • Collected fees and made payments for the federal government
  • State banks opposed its power

1816 Second Bank of the US

Failed because it did not regulate state bank or charter any other banks.
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1930s Great Depression

FDR established the “bank holiday” where all banks closed. Only the stable banks could reopen.

Glass-Steagall Banking Act

Established the Federal Deposit Insurance Corporation that will secure a person’s money if the bank was to fail. made deposits riskier rather than safer, so it had an opposite effect.

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