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1791 Bank of the US
In 1791, the Bank of the US received a charter that was signed by President Washington. The bank made payments in support of the federal government by collecting fees. Many state bands opposed this bank and accused it of granting the national government too much power. -
1816 Second Bank of the US
The Second bank of the US was chartered with the same authority and responsibility as the First Bank, but it did not succeed. It maintained the characteristics of poor management and fraud. In addition, it failed to regulate state banks and charter other banks. -
Civil War (printing currency)
The Civil War caused a coin shortage. For this reason, the Federal government began printing the first official United States paper currency. -
1863 National Banking Act
The National Banking Act hed established a system of nationally chartered banks. It also made backing by government securities necessary for the currency that they issued. In addition, because of the National Banking Act of 1863, banks were permitted to have a state or federal charter (dual banking). -
1913 Federal Reserve Act
Passed during President Wilson’s administration, the Federal Reserve Act created the National Bank in order to establish economic stability. The bank was in charge of monetary policy and is one of the most influential laws concerning the financial system. -
1930’s Great Depression (regarding banking)
After President Roosevelt was inaugurated in March 1933, banks had either closed or placed restrictions on how much money depositors could withdraw in all states. FDR's declared a national "bank holiday” which closed banks for four days in order to restore confidence in the banking system. -
Glass-Steagall Banking Act
Passed in 1933 by Congress, the Glass-Steagall Banking Act (Banking Act of 1933) prohibits commercial banks from taking part in the investment business. It was passed in response to the failure of almost 5,000 banks during the Great Depression. The act also established the Federal Deposit Insurance Corporation which guarantees one’s possession of his or her money if a bank goes under. -
1970's (regarding banking)
Earlier in the 1970’s banks in the U.S. faced many restrictions such as ones on interest rates on both the deposit and lending sides of their business. Later in the decade, Congress relaxed these banking restrictions. -
1982 (regarding banking)
In 1982, savings and loans banks (S&L) experienced a loosening of regulations. This permitted them to take part in risky activities including commercial real estate lending and junk bond investing. As a result, investments turned sour, banks failed, the Federal government had to give money back to its investors, the Federal government had a debt of $200 million, and the FDIC overtook the S&L. -
1999 Gramm-Leach-Bliley Act
The Gramm-Leach-Bliley Act makes it necessary for financial institutions to defend sensitive data and explain their practices concerning information-sharing to their customers. It also permits banks to maintain more control over banking, insurance, and securities. The disadvantages of this include the decrease of competition and the possible formation of a universal bank which may cause a reduction of privacy.