-
Bank of The United States
The bank was proposed by Alexander Hamilton in 1971. It was granted a twenty year charter and it was doing well. It was making a profit but people thought that it was "constraining economic development." It was closed after it's charter ended. The War of 1812 led to it's revival. Only to get shut down by Andrew Jackson in 1836. It was then reopened under the laws of Pennsylvania until its failure in 1841. -
The Second United States Bank
It was chartered by congress in 1816. This bank was huge in the "bank wars" witch was fought between Andrew Jackson and bank president, Nicholas Biddle. Jackson said that the Banks were " unconstitutional and against republican ideals." This failed because it didn't regulate the state banks nor charter other banks. It also failed because states were printing their own currency. The federal government didn't print paper currency until the Civil War. -
National Banking Act
Banks could have a state or a federal charter (Duel Banking). This was formed to help fund the civil war. A tax system had not yet been drawn up. But this act help develop currency and relive some financial tension in the early days of the Civil War. -
Federal Reserve Act
This made the FED system the central bank of the U.S. This act lays down the purpose of this bank and the structure of this bank. It provides a safer reliable money supply. -
Great Depression, Regarding Banking
The great depression caused banks to close and collapse. Only Stable Banks were allowed to stay open this is called the Glass-Steagall Act. This created the FDIC and separated commercial investment banking. -
1970's
Congress relaxes restrictions on banking. 4 years past the great Depression. The Glass- Steagall act became more and more controversial. The banks then allowed more freedoms to banks to offer more financial services. -
1982
Congress allows saving and loans banks to make high risk investments and loans. This is when banks begin to fail. The federal government had to give investors 200B dollars. The FDIC had to take over many of the S and L banks. -
Gramm-Leach Bliley Act
This allowed banks more control over banking, insurance and securities. Seriously reduced the regulation put in place during the Glass-Steagall Act
