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The Bank of Pennsylvania opens.
Philadelphia merchants open the Bank of Pennsylvania on July 17, 1790, in order to provide funds for the Continental Army in the fight against Britain. -
the Bank of the United States
Treasury Alexander Hamilton asks Congress to set up a national bank for the new nation, and the Bank of the United States (BUS) is created on February 25, 1791. The government deposits tax money in the Bank -
A second national bank is chartered
Republicans realize that the nation needs a central bank to regulate the money supply, and they support a law to charter the second national bank. The second BUS restores order to the nation's money and helps American businesses grow. -
The federal government prevents Maryland from taxing the Bank.
After the second Bank is chartered, Maryland attempts to tax the Bank in order to drive it out of the state. James McCulloch, the Bank cashier, refuses to pay the tax, and the conflict is resolved in the Supreme Court. -
President Andrew Jackson forces the Bank to close.
President Andrew Jackson, who sees the Bank as undemocratic, vetoes a bill to renew the charter four years early. As a result, the Bank becomes a major issue in the 1832 election, and the popular vote rejects the Bank's renewal. To further cripple the bank, Jackson demands that federal money be deposited in state banks rather than the BUS. -
Jay Cooke launches an investment banking firm.
the wealthy banker Jay Cooke launches the first investment banking firm in the U.S. Borrowing three million dollars from the Pennsylvania government, he sets up Jay Cooke Company, which helps finance Northern efforts during the Civil War. -
Congress approves the National Bank Act
As the Union battles the Confederacy in the Civil War, the war grows increasingly expensive, with no clear tax program in place to finance it. On February 25, 1863 Congress approves the National Bank Act, which is meant to establish a national banking system, make federal war loans, and create a national currency. Additional legislation converts state banks to national ones, but the currency supply remains precarious until 1913. -
The Federal Reserve Act sets up a new system of federal banks
Under President Woodrow Wilson, who hopes to restore the national economy, Congress passes the Federal Reserve Act in 1913. The Act sets up a new system of federal banks, the first since the BUS closed in 1836. The Act also gives the government the power to raise or lower interest rates and control the money supply. -
The Bank Holiday closes all of the nation's banks
In response to the Great Depression, President Franklin Delano Roosevelt launches his "New Deal" to attempt to fix the nation's economic problems. In his first major act, Roosevelt closes all of the nation's banks for four days beginning on March 6 1933, known as the Bank Holiday. When the banks re-open, he assures the public that they can return their money to the banks. This helps begin to restore balance to the economy. -
The Global Financial Crisis leads to increased regulations
banks overextend their abilities to make loans and assume significant debt. The burst of the housing bubble directly leads to the Global Financial Crisis on August 9, 2007, which causes the worst financial crisis since the Great Depression.