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)

1913 Federal Reserve Act

1913: Federal Reserve Act

  • National Bank

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

1970’s (Regarding Banking)

1970s: Congress relaxes restrictions on banks.

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)