by: Marion Mann
Second Bank of US failed because it didn't regulate State Banks or charter any other banks.
The Federal Government didn't print paper currency until the Civil War.
The National Banking Act allowed Banks to have a state or federal Charter.
The Federal Reserve Act established our National Bank.
1930's Great Depression
The Great Depression caused banks to collapse. FDR declared national bank "holiday" where all banks closed and couldn't reopen until they proved they were financially stable enough.
Glass-Steagall Banking Act
Established the Federal Deposit Insurance Corporation (FDIC). Ensures your money in case a bank goes under.
Congress relaxes restrictions on Banks.
Savings and Loans banks were allowed to make high risk investments and loans. Investments went bad and the banks went under. The Federal Government had to pay back investors and went $200 billion in debt. The FDIC took over the S&L
1999 Gramm-Leach-Bliley Act
Allows banks to have more control over banking, insurance, and securities.