Banking timeline

1791

The First Bank of the US received its charter in 1791 from Congress that was signed by President Washington.

This bank collected fees and made payments for the Federal government but eventually failed because the state banks were against all the power the bank had.

1816

The Federal government tried again to have a National Bank but failed. This bank lasted for 20 years until the charter ran out in 1836.The bank didn't regulate state banks or charter any new banks.

1862

During the Civil War, the Federal Government began to print paper currency.

1863

The National Banking Act allowed for deal banking, meaning banks could have a state or federal charter.

1913

The Federal Reserve Act created the National Bank, set up the FED, and began the printing of money.

1930

The Great Depression caused the banks to collapse and forced Roosevelt to declare a "Bank Holiday." The banks could only reopen if they could prove they were financially stable.

1933

The Glass- Steagall Banking Act created the Federal deposit insurance corporation, FDIC. This meant that if a bank fails, you won't lose your money.

1970

Congress began to be less strict on the banks.

1982

In 1982, Congress allowed for banks to make high risk loans and investments leading to the fail of the banks. This put the government into $200 billion debt since they had to pay the investors back. This event led to the FDIC taking over the banks.

1999

The Gramm-Leach-Bliley Act gave the banks more control over banking, insurance, and securities. However, the bad side to this act was that it created less competition and the reduction of privacy.