TIMELINE (Module 13 Lesson 2 )
By: Currie Carter
1791 Bank of the US
The Bank of the US received a charter in 1791 from Congress; signed by President Washington.
- This bank collected fees and made payments on behalf of the federal government.
- Bank went away because state banks opposed it; thought it gave too much power to national government.
1816 Second Bank of the US
Second Bank of the US was chartered in 1816.
- Failed because it didn't regulate state banks or charter any other bank.
Civil War (Printing Currency)
- State banks were issuing their own currency.
- Federal government didn't print paper currency until the Civil War.
1863 National Banking Act
1863: National Banking Act
- Banks could have a state or federal charter (duel banking)
1930’s Great Depression (Regarding Banking)
1930s: Great Depression caused banks to collapse
- FDR declared a "bank holiday" where banks closed
- Only allowed to reopen if they proved they were financially stable
Glass-Steagall Banking Act
Glass-Steagall Banking Act
- Established the Federal Deposit Insurance Corporation (FDIC)
- Ensures that if the bank goes under, you still have your money
1982 (Regarding Banking)
1982: Congress allows S&L banks to make high risk loans and investments
- Investments went bad
- Banks failed
- Federal government had to give investors their money back
- Federal government debt: $200 billion
- The FDIC took over the S&L
1999 Gramm-Leach-Bliley Act
1999: Gramm-Leach-Bliley Act
- Allows banks to have more control over banking, insurance and securities
- Cons: less competition, many form a universal bank; may lead to more sharing of information (reduction of privacy)