Mod 13 Lesson 2.
1791 Bank of the US.
In 1791 the first bank in the US was created. It started on February 1st 1791.
1816 Second Bank of the US.
This bank had the same powers and responsibility of the first bank. However this bank didn't enjoy the limited success the first did. This bank suffered from poor management.
1863 National Banking Act.
This act established a system of national banks. This helped to form a national currency and backed up other banks, and encouraged growth.
1913 Federal Reserve Act.
This act intended to create a form of stability, creating a central bank opens new doors for expansion and more banks to be created across the country.
1930's Great Depression.
During the 1930's many banks had issues. There was an over abundance of banks that were struggling to stay alive on interest from loaning money to farmers. Since everyone had less money to spend, the economy was plummeting as no one was buying anything.
Glass-Steagall Banking Act.
This act was put into place by congress to prevent commercial banks from participating in the investment banking business.
During the 70's there was another small crisis that involved banking. Mainly it involved a dramatic crash in property.
Another crisis occurred in 1982 that involved the exchange rate for pesos to a fixed number. This shrunk the country's GDP by almost 15%.
1999 Gramm-Leach-Bliley Act.
This act served to remove a lot of barriers between the banks and the economies market. The bank had more freedom when it came to security and how they handled money.