The history of banking
By Cate Goodman
In 1791 George Washington signed the charter for the first bank of the United States
In 1816 James Monroe signed the charter for the second bank of the United States.
Money was first printed on paper during the civil war
The 1863 banking act was formed to help finance the civil war as well as create national banks and currency
The 1913 Federal Reserve Act established the federal reserve as America's national banking system
The great depression of the 1930’s caused people to take all their money out of the banks which caused banks to fail and people did not take there money out to lose everything. Situation got so bad that FDR had to order a bank holiday to prevent more banks fromclosing and more people from losing money.
the Federal Deposit Insurance Corporation was established under the Glass-Steagall Banking Act. This ensures that if a bank closes you will still get your money back.
In the 70s banking restrictions were relaxed.
In 1982 S&L banks were allowed to make high-risk loans and investments this caused banks to fail and the government had to go into debt giving people there money back.
Under the 1999: Gramm-Leach-Bliley Act Banks were given more control over banking, insurance and securities