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
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.