Module 13 Lesson 2 Assignment

1791 Bank of the US

  • Received a charter from congress
  • Made payments and collected fees from the federal government
  • Said that this bank gave the federal government too much power and closed

1816 second bank of the us

  • Located in Philadelphia, Pennsylvania
  • Did not charter other banks or regulate state banks
  • States printed their own currency
  • Federal currency was not printed until the civil war

civil war (printing currency)

  • Known as greenbacks, each printed in green on the back
  • Demand notes were first issued (1861-1862)
  • United States notes were printed next and issued (1862-1865)

1862 national banking act

  • Allowed banks to have state or federal charter
  • Also known as dual banking

1913 federal reserve act

  • Created a central bank
  • Signed by President Wilson

1930's great depression

  • Stable banks were the only ones allowed to reopen
  • Established the Federal Deposit Insurance Corporation (FDIC)
  • Created the Glass-Steagall Banking Act

glass-steagall banking act

  • Created during the Great Depression
  • Commercial and investment banking became separated

1970's

  • Restrictions on banking were relaxed by congress

1982

  • High risk loans and investments were allowed to be made by S&L banks
  • This resulted in failing banks, reimbursement to investors by the Federal government, and the S&L being taken over by the FDIC

1999 Gramm-Leach-Bliley act

  • Banking, insurance, and securities now have more control held over them
  • Allows commercial banks to act as investment banks