History Of Banking Timeline by Paligro, Kyle

Transition to the industrial Revolution.

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It impacted the economies by adding a lot of building or organization to make more money, also causing more money to be produced.

1791, First bank of the United States.

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Its purpose was to act as the federal government's fiscal agent, collecting tax revenues, securing the government's funds, making loans to the government, transferring government deposits through the bank's branch network, and paying the government's bills.

1816, The second bank of the United States.

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It would act as fiscal agent for the federal government holding its deposits, making its payments, and helping it issue debt to the public and it would issue and redeem banknotes and keep state banks' issuance of notes in check.

20th century, U.S economy transition to industrial economy.

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These banks invested in a portfolio of firms that depended on one another and that together pioneered new markets and industries. These banks were also large oligopolists, that held powerful market positions at the beginning of the rapid growth periods.

1907, Panic with Stock Market fall.

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The New York Stock Exchange remained open.

1913, Federal Reserve System established.

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Today, the Fed is tasked with managing U.S. monetary policy, regulating bank holding companies and other member banks, and monitoring systemic risk in the financial system. The seven-member Board of Governors, the system's seat of power, is based in Washington, DC, and currently led by Fed Chair Jerome Powell.

World War 1, U.S Borrowed large sums of money

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To the war planners, the appeal of borrowing funds from the public was that it would be good for morale. Individuals could demonstrate their support for the war by purchasing bonds.

1920's, credit services first offered to individuals.

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Credit services that were available was Installment credits.

1929, Stock Market Crash.

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Commercial banks continued to loan money to speculators, and other lenders invested increasing sums in loans to brokers.

1930's, Great depression.

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Factories were shut down, farms and homes were lost to foreclosure, mills and mines were abandoned, and people went hungry. The resulting lower incomes meant the further inability of the people to spend or to save their way out of the crisis, thus perpetuating the economic slowdown in a seemingly never-ending cycle.

1940's-1960's, Great prosperity.

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This is inflation's primary and most pervasive effect. An overall rise in prices over time reduces the purchasing power of consumers because a fixed amount of money will afford progressively less consumption.

1970's, Congress passed consumer credit protection legislation.

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Congress passed the law, which protects the confidentiality of personal financial records, in response to the 1976 Supreme Court's United States v. Miller ruling which found that the consumer bank account records aren't subject to constitutional privacy protection.

1970's, Stock Market made major gains.

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The introduction of technology over the next decade enabled the rate of trading to increase substantially from just over a billion shares traded during 1960 to over three billion in 1970.

September 11, 2001, Terrorist Attacks on World Trade Center.

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The immediate effect of the tragic events was to disrupt the functioning of some markets and induce investors to shift into less risky assets. US equity markets closed for four days, while those of Europe and Asia, which remained open but halted trading in the shares of US-based companies, saw stock prices retreat.

2007, economic Reccesions.

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As a result, banks often see a significant rise in loan defaults (and losses) during a recession. In addition, recessions bring uncertainty, which causes banks to tighten their lending standards, and consumers are usually less willing to borrow money for things like a new car or home purchase during uncertain times.