Time Line of the Bank

What the Bank of US went through

1791 Bank of the US

President George Washington was the first one to charter a national bank, a Federal Bank.

1816 Second Bank of US

Chartered after the first bank was disposed of because of arguments. However, this bank also failed because it did not regulate and control the rest of the banks. Everything was very unorganized.

Civil War 1861-1865

Before the Civil War, the banks printed their own currency, but during the Civil War, the Confederate Government started printing its own money. This caused a lot of trouble because the money had no value, and was not backed up by an gold or silver.

1863 National Banking Act

1) Made a system of National Banks- gave the permission to charter federal banks

2) Created a currency that was the same across the county

3) Made a Treasury to help finance the Union's side during the Civil War

1913 Federal Reserve Act

Created the Federal Reserve that exists today. It had the monetary policies and a Central Bank that fixed the economy at the day.

1930's Great Depression

The bank system collapsed because the banks gave up all their money for loans and they had no money left. President Roosevelt called a holiday for all banks until they were financially stable.

Glass-Steagall Banking Act 1933

The Federal Deposit Insurance Corporation was established. This insured the money a person puts into a bank, he will get it out, even if the bank collapses.

1970's

In the 1970's Congress decides that they will not regulate and restrict the banks so much.

1982

The Federal Bank allowed too risky loans and investments to take place. This caused the banks to fail, but they still had to give the people their money back. Because of this, the Federal Bank went into a $200 million debt. Then the FDIC took over this crisis, which was called the Saving And Loan Crisis.

1999 Gramm-Leach-Bliley Act

Gave the power to the Federal Bank to control other banks banking, insurance, and securities. The downside of that is there is not as much competition between banks, and since there could be a universal bank, information would have to be shared which lowers privacy of individuals.