MODULE 13 LESSON 2 TIMELINE

BY: JASMINE FIELDS

BANK OF THE US (1791)

THE BANK OF THE US WAS A CHARTER IN 1791 FROM CONGRESS AND WAS SIGNED BY PRESIDENT WASHINGTON. THIS BANK COLLECTED FEES AND MADE PAYMENTS BECAUSE OF THE FEDERAL GOVERNMENT. BANK OF THE US WENT AWAY BECAUSE STATE BANKS OPPOSED BECAUSE THEY THOUGH IT GAVE TO MUCH POWER TO NATIONAL GOVERNMENT.

SECOND BANK OF THE US(1816)

THIS BANK FAILED BECAUSE IT DID NOT REGULATE SATE BANKS AND IT DID CHARTER ANY OTHER BANKS.

NATIONAL BANKING ACT(1863)

THE NATIONAL BANKING ACT WAS CREATED IN 1863 AND IT WAS MADE SO BANKS COULD HAVE A STATE OR FEDERAL CHARTER(DUEL BANKING)

FEDERAL RESERVE ACT(1913)

THE FEDERAL RESERVE ACT AND IT WAS THE NATIONAL BANK

GREAT DEPRESSION(1930S)

THE GREAT DEPRESSION CAUSED BANKS TO COLLAPSE. THE FDR DECLARED A BANK HOLIDAY WHERE BANKS CLOSED. THEY WERE ONLY ALLOWED TO REOPEN IF THEY WERE FINACIALLY STABLE.

GLASS-STEAGALL BANKING ACT

IT ESTABLISHED THE FEDERAL DEPOSIT INSURANCE CORPORATION AND IT ENSURED THAT IF A BANK GOES UNDER YOU STILL WOULD HAVE YOUR MONEY.

1970S

CONGRESS RELAXES RESTRICTIONS ON BANKS

1982

CONGRESS ALLOWED S&L BANKS TO MAKE HIGH RISK LOANS AND INVESTMENTS. THE INVESTMENTS WENT BAD, BANKS FAILED, THE FEDERAL GOVERNMENT HAD TO GIVE INVESTORS THEIR MONEY BANK, FEDERAL GOVERNMENT HAD A DEBT OF $200 BILLION, AND THE FDIC TOOK OVER S&L.

GRAMM-LEACH-BILLY ACT(1999)

IT ALLOWED BANKS TO HAVE MORE CONTROL OVER BANKING, INSURANCE, AND SECURITIES. IT MADE LESS COMPETITION AND A REDUCTION OF PRIVACY.