The History Of Banking...
Ja'Quez Boyd 8-)
Bank of the US (1791)
1791, The First Bank of the United States was one of the four major financial innovations proposed and supported by Alexander Hamilton, first Secretary of the Treasury. The national bank & the other measures were assumption of the state war debts by the U.S. Government, establishment of a mint and imposition of a federal excise tax. The goals of Hamilton's three measures were to...
- Have the Federal Government assume the states' Revolutionary War debts
- Pay off the war debts
- Raise money for the new government
- Establish a national bank and to create common currency
1863 National Banking Act
The state banking system still exhibited the undesirable properties enumerated earlier. The National Banking Acts of 1863 and 1864 were attempts to assert some degree of federal control over the banking system without the formation of another central bank. The first provision of the Acts was to allow for the incorporation of national banks.
The Second Bank Of The U.S. (1816)
The Second Bank of the United States, located in , was the second federally Philadelphia and authorized by Alexander Hamilton. A private corporation with public duties, the bank handled all fiscal transactions for the U.S. Government, and was accountable to Congress and the U.S. Treasury. The essential function of the bank was to regulate the public credit issued by private banking institutions through the fiscal duties it performed for the U.S. Treasury, and to establish a sound and stable national currency.
The Civil War. (The Printing Currency)
Greenbacks were paper currency issued by the United States during the American Civil War. They were in two forms: Demand Notes, issued in 1861–1862 and United States Notes issued in 1862–1865.
1913 National Act Movement.
The Federal Reserve Act created the Federal Reserve System (the Fed). The Fed serves as the central bank of the United States. The Act created a banking system consisting of both private and public organizations. The Federal Reserve Act was enacted in response to a series of financial crises. The intent of the Act was to create a degree of financial stability.
1930’s Great Depression
The Great Depression (1929-39) was the deepest and longest-lasting economic downturn in the history of the Western industrialized world. In the United States, the Great Depression began soon after the stock market crash of October 1929, which sent Wall Street into a panic and wiped out millions of investors. By 1933, when the Great Depression reached its nadir, some 13 to 15 million Americans were unemployed and nearly half of the country’s banks had failed.
Glass-Steagall Banking Act
An act the U.S. Congress passed in 1933 as the Banking Act, which prohibited commercial banks from participating in the investment banking business. The Glass-Steagall Act was sponsored by Senator Carter Glass, a former Treasury secretary, and Senator Henry Steagall, a member of the House of Representatives and chairman of the House Banking and Currency Committee.
The Bank Secrecy Act of 1970. Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments , and file reports of cash purchases of these negotiable instruments of more than $10,000 (daily amount), and to report suspicious activity that might signify money laundering,tax invasions, or other criminal activities.
1999 Gramm-Leach-Bliley Act.
The Gramm–Leach–Bliley Act (GLBA), also known as the Financial Services Modernization Act of 1999 and commonly pronounced ″glibba″, (Pub.L. 106–102, 113 Stat. 1338, enacted November 12, 1999) is an act of the 106th United States Congress (1999–2001).