History of Bannking Timeline

By Samuel Scarborough

1791: Bank of US recieved charter from congress, signed by President Washington

  • It collected fees and made payments on behalf of the federal government
  • Collapsed because state and local governments thought it gave banks too much power

1816: Second US bank was chartered

  • Failed b/c it didn't regulate the actions of state banks, or charter others

Civil War: State banks began issuing thier own currency

  • Federal government did not start printing money until the Civil War

1863: National Banking Act

  • Banks could have a state or federal charter

1913: Federal Reserve Act

  • Established the first working national bank

1930's: Great Depression collapses banks

  • Franklin Delanor Roosevelt Declared a "bank holiday",
  • Banks remained closed until they proved they were financially stable

Glass-Stegal Banking Act

Established Federal Deposit Insurance Corporation

  • Ensures money back if your bank collapses

1970's: Congress relaxes restrictions

1982: Congress allows Savings and Loan Banks to make high risk loans and investments

  • Investments went bad
  • Banks failed

Fed gave investors money back

  • Fed debt= 200 Billion
  • FDIC took over Savings and Loans

1999: Gramm-Leach-Biley Act

Allows banks to have more control over banking, insurance, and securities

  • Led to loss of competition, may from Universal bank; sharing of information

Sources

Google Images and Notes from Mrs. Efland's Civics and Economics class.