By Sophia Heath
In 1797 the Bank of the US got a charter from Congress. This Bank collected fees and made payments on the behalf of the federal government. The Bank went away because the state banks did not approve of it because they thought it gave to much power to the national government.
During this year the Second Bank of the US was chartered. This did not work out because it did not regulate state banks or charter any other bank.
In this year not only did the Civil War being but this was the first time they printed out paper money.
In 1863 the National Banking Act occurred. Which stated that banks could have a state or federal cheater or also known as duel banking.
In that year the Federal Reserve Act was created. The Federal Reserve Act granted the authority to issue U.S. dollars as a legal tender.
During these years the Great depression occurred. Which cause the banks to collapse. Franklin D. Roosevelt declared a bank holiday which meant all the banks closed but were only allowed to open up again if they showed that they were financially stable.
This year two members of the congress back then put their names on this act. Which separated investment and commercial activities. Also it established the Federal Deposit Insurance Corporation which makes sure that if a bank goes under you will still have your money.
This is when Congress relaxes restrictions on banks.
In this year Congress allowed S&L banks to make high risk loans and investments. Which the investments went bad, the banks failed, the Federal Government had to give investors their money back, which put the Federal Government in 200 billion dollars in debt. Then the FDIC took over the S&L.
This year the Gramm-Leach-Bliley Act was put into action. Which allowed banks to have more control over banking, insurance and securities. The bad part about this is that there would be less competition and that may form a universal bank; that may lead to more sharing of information meaning there would be less privacy.