Banking

Events

Bank of the US

1791


The First Bank of The United States was needed because the government had a debt from the Revolutionary War. Each state had a different form of currency. The bank went away because state banks opposed it.

Second Bank of the US

1816


This bank was chartered with the same responsibilities and powers as the First Bank. The Second Bank of the US failed because it didn't regulate state banks or charter any other bank.

Civil War(Printing Currency)

1861


Before the American Civil War started, the U.S. Government was debt was more then $64 million. Once the war began debt grew. The Government started printing money as a solution.

National Banking Act

1863


The National Banking Act stated that banks could have a state or federal charter.

Federal Reserve Act

1913


Before 1913 investors were unsure about the safety of their deposits. The Federal Reserve Act gave the 12 Federal Reserve banks the ability to print money in order to ensure economic stability.

Great Depression Banking

1930


After the stock market crash of 1929 hundreds of thousands of customers began to withdraw their deposits. With no money to lend, the American banking crisis deepened. This was later know as the Great Depression.

Glass-Steagall Banking Act

1933


The Glass-Steagall Banking Act was passed during the Great Depression. It prevented commercial banks from trading securities with their clients deposits.

Banking in 1970's

1970


In 1970 a Bank Secrecy Act was established. It requires financial institutions in the U.S. to assist U.S. government agencies to detect and prevent money laundering.

Banking in 1982

1982


In Chile, a major economic crisis took place. The unemployment rate rose.

Gramm-Leach-Bliley Act

1999


The Gramm-Leach-Bliley Act attempts to update and modernized the financial industry, It repealed the Glass-Steagall Act. It also stated that banks and other financial institutions were not allowed to offer financial services.