Banking industry

time line

1791 Bank of the US

Proposed by Alexander Hamilton, the Bank of the United States was established in 1791 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 its charter was not renewed in 1811.

1816 Second Bank of the US

The Second Bank was founded after the War of 1812 when it was realized that without a national bank it would be impossible to fund another war such as the one just fought. Founded in 1816, the building was finished in 1818.

Civil War (printing currency)

Prior to the Civil War, banks printed paper money. For America's first 70 years, private entities, and not the federal government, issued paper money. Notes printed by state-chartered banks, which could be exchanged for gold and silver, were the most common form of paper currency in circulation.

1863 National Banking Act

The National Banking Acts of 1863 and 1864 were two United States federal banking acts that established a system of national banks for banks, and created the United States National Banking System. They encouraged development of a national currency backed by bank holdings of U.S. Treasury securities

1913 Federal Reserve Act

The 1913 U.S. legislation that created the current Federal Reserve System. The Federal Reserve Act intended to establish a form of economic stability through the introduction of the Central Bank, which would be in charge of monetary policy, into the United States. The Federal Reserve Act is perhaps one of the most influential laws concerning the U.S. financial system.

1930’s Great Depression (regarding banking)

As the economic depression deepened in the early 30s, and as farmers had less and less money to spend in town, banks began to fail at alarming rates. During the 20s, there was an average of 70 banks failing each year nationally. After the crash during the first 10 months of 1930, 744 banks failed – 10 times as many. In all, 9,000 banks failed during the decade of the 30s. It's estimated that 4,000 banks failed during the one year of 1933 alone. By 1933, depositors saw $140 billion disappear through bank failures.

Glass-Steagall Banking Act, 1970’s (regarding banking)

The term Glass–Steagall Act usually refers to four provisions of the U.S. Banking Act of 1933 that limited commercial bank securities activities and affiliations within commercial banks and securities firms. The term Glass–Steagall Act is also often used to refer to the entire Banking Act of 1933. Starting in the early 1960s federal banking regulators interpreted provisions of the Glass–Steagall Act to permit commercial banks and especially commercial bank affiliates to engage in an expanding list and volume of securities activities.

1982 (regarding banking)

The early 1980s recession describes the severe global economic recession affecting much of the developed world in the late 1970s and early 1980s. The peak of the recession occurred in November and December 1982, when the nationwide unemployment rate was 10.8%, highest since the Great Depression. As of 2015, it is still the highest since the 1930s. In November, West Virginia and Michigan had the highest unemployment with 16.4%; Alabama was in third with 15.3%; South Dakota had the lowest unemployment rate in the nation, with 5.6%.

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 to safeguard sensitive data.