Module 13 Lesson 2 Assignment
By: Isabella Arnot
1791 Bank of the US
Proposed by Alexander Hamilton, the bank was established to serve as a repository for federal funds and as the government's fiscal agent. Although it was well managed and profitable, critics charged that the First Bank's fiscal caution was constraining economic development, and the charter was not renewed in 1811
1816 Second Bank of the US, Civil War
The Second Bank of the US was chartered for many of the same reasons as its predecessor. The war of 1812 had left a formidable dept, and inflammation surged upwards due to the ever-increasing amount of notes issued by private banks
1863 National Banking Act
This was the United States federal banking act that establishes a system of national banks for banks, and created the United States Banking System. The encouraged development of a national currency backed by bank holdings of U.S. Treasury securities and established the Office of the Comptroller of the Currency as part of the US department of the Treasury
1930's Great Depression
The great depression started in the late 20's when the American banking system was a patchwork of branch banks, which could share funds and resources across localities, and local unit banks, which were more vulnerable to the crisis. State laws in many states prevented branch banks from developing, making many state’s banks increasingly vulnerable as the 1929 crash reduced customers’ ability to pay back loans. As payment of loans and deposits provided most of the cash flow and backing of American banks, this put banks in constant need of money in order to hand out withdrawals and pay their creditors, leading to bank closures.
Glass-Steagall Banking Act, 1970's
The Glass-Steagall Act, also known as the Banking Act of 1933, was passed by Congress in 1933 and it prohibits commercial banks from engaging in the investment business. It was enacted as an emergency response to the failure of nearly 5,000 banks during the great depression
The Crisis of 1982
Major economic crisis suffered in Chile. The crisis took place during the time of the Chilean military dictatorship following years of radical neoliberal reforms
1999 Gramm-Leach_Bliley Act
The Gramm-Leach-Bliley Act requires financial institutions-companies that offer consumers financial products or services like loans, financial or investment advice, or insurance-to explain their information-sharing practices to their customers and the safeguard sensitive data