Module 13 Lesson 2 Assignment

By: Catherine Jackson

1791: Bank of the United States

The Bank of the US received a charter in 1791 from Congress which was signed by President Washington. This bank collected fees and made payments on behalf of the federal government. This bank went away because the states opposed it because they thought it gave too much power to the government.

1816: Second Bank of the United States

This bank was chartered again in 1816. This bank failed once again because it didn't regulate state banks or charter any other bank.

Civil War: The Beginning of Printing Currency

At this time, states were issuing their own currency. When the Civil War came to be, the Federal government began printing their own paper currency.

1863: National Banking Act

This act allowed for banks to have a state or federal charter, also known as duel banking. A system of national banks was developed also along with the development of a stable national currency.

1913: Federal Reserve Act

This act started up the national bank, setting up our Federal Reserve as the central bank of the US.

1930's: The Great Depression

This caused a collapse in the nation's banks. This then FDR to declare a "bank holiday" where all banks closed. The banks were allowed to reopen if they were financially stable.

Glass-Steagall Banking Act

As a result of the Great Depression, this act was put into action to help establish the Federal Deposit Insurance Corporation (FDIC). This ensures that if a bank goes under, you still have your money. This act also prohibited banks from investing in the stock market.

The Banking Era of the 1970's

In the 1970's, Congress decided to relax the restrictions put upon banks.

Banking in 1982

In 1982, Congress allowed for S&L banks to make high risk loans and investments. In return, these investments went bad causing the banks to fail. This resulted in the Federal government to give all of the investors their money back which put them in debt of $200 billion. This then caused for the FDIC to take over the S&L.

1999: Gramm-Leach Bliley Act

This act allowed banks to have more control over banking, insurance, and securities.It also allowed for financial institutions to consolidate as well as safeguarding their information with a customer and informing the customer of their practices.