history of the u.s. federal banking systemkarlshell.com/wp-content/uploads/2016/08/history... ·...
TRANSCRIPT
![Page 1: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/1.jpg)
HistoryofTheU.S.FederalBankingSystem
IsabelWiseandMattGilbaugh
![Page 2: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/2.jpg)
Question
• DoesanyoneknowwhatthefirstcommercialbankontheU.S.was?
![Page 3: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/3.jpg)
BankofPennsylvania
• FirstcommercialbankintheU.S.• Foundedin1780• FoundedinordertocoverthedebtsincurredasaresultoftheRevolutionaryWar
• Stockholdersanddirectorswerepolitically,financially,andsociallyprominentmen
![Page 4: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/4.jpg)
![Page 5: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/5.jpg)
![Page 6: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/6.jpg)
AlexanderHamilton• NotedasafoundingfatheroftheU.S.bankingsystem
• Supportedthecolonies’fightforindependencefromBritain
• Servedasanaidetothecolonies’leadgeneral,GeorgeWashington
• Aspresident,GeorgeWashingtonnamedhimthefirstSecretaryofTreasury
![Page 7: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/7.jpg)
FinancialIssuesaftertheRevolutionaryWar
• WarlefttheUnitedStatesinheavydebt• Moneywasessentiallyworthless• Hamiltonresearchedcentralbankingsystemsinothercountries,specificallyGreatBritain
• AnalyzedhowGreatBritainbankingsystemsupportedacountryatwar
![Page 8: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/8.jpg)
Question
• DoesanyoneknowwhatthefirstbankoftheUnitedStateswascalled?
![Page 9: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/9.jpg)
CreationofTheFirstBankoftheUS
• FoundedbyAlexanderHamiltonin1791• OpenedinPhiladelphiawitha20yearcharter• Beganwithcapitalizationof$10million• Governmentowned20%ofthestockandprivateinvestorsownedtheremaining80%
• Becamethelargestfinancialinstitutioninthecountry
![Page 10: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/10.jpg)
FunctionsoftheFirstBank• Accepteddepositsfromthepublic• Madeloanstoprivatebusinessesandthegovernment
• Circulatednoteswhichbecameanimportantformofcurrency
• Collectedtaxrevenues• Madeloanstoandpaidthebillsofthegovernment
• Unlikecentralbanks,itdidnotofficiallycontrolthemonetarypolicyorstatebanks
• InternationalTradeimprovedwithnewcurrency
![Page 11: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/11.jpg)
ScripBubbleof1791
• Whatisabankscrip?
![Page 12: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/12.jpg)
ScripBubbleof1791• Whatisabankscrip?• Bankscrips representedtherighttopurchasestockintheFirstBankandwereinitiallysoldfor$25in1791
• Tocompleteownership,investorshadtolaterpay$100bi-annuallyin1792and$75in1793
• Onequarterofpaymenthadtobeintheformofgold,buttheremainingthree-quarterscouldbeintheformofbonds
• Because¾ofthepaymentcouldbemadeusingbonds,thepriceofbondsincreasedasinvestors’demandforbondsincreased
![Page 13: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/13.jpg)
ScripBubbleof1791• Beganwiththebubbleofbankscrips inJuly1791• Onequarterofpaymenthadtobeintheformofgold,buttheremainingthree-quarterscouldbeintheformofbonds
• Bondsincreaseinprice• Thedesireforscrips increasedtheirprice,raisingthepricedramatically
• Priceseventuallycrashedbymid-Septemberandstabilized
![Page 14: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/14.jpg)
![Page 15: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/15.jpg)
Panicof1792
• “TheSixPercentClub”• Banksharepriceswentonarollercoaster,increasinganddecreasingfromOctobertoMarchof1792
• GeorgeClintonandhisfollowerswithdrewlargeamountsfromtheFirstBankinMarch1792
• Resultedinacreditshortage
![Page 16: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/16.jpg)
Panicof1792• Sixpercentclubfailtomakepaymentsontheirloans
• WithoutthesebankerstopurchasesharesoftheFirstBank,thepriceofthestockdeclines
• April1792:DefaultingofthesixpercentclubandthepriceoftheFirstBankstockcollapsingproducesthepanic
• Response:bank’stightencredit,reducecashreserves,bank’sdeclinerenewalofloans
![Page 17: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/17.jpg)
ClosingoftheFirstBank
• Charterexpiredin1811• In1811,Congressvetoedtherenewalbyonevote
• Therewasasecondvote,inwhichitwasalsovetoed
• Therefore,FirstBankoftheUnitedStatesclosedin1811
![Page 18: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/18.jpg)
Warof1812
![Page 19: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/19.jpg)
EconomicConsequencesoftheWarof1812
• Impededtrade,causedmanypricestoskyrocket
• Customdutiesonimportsdroppedduetoreducedtrading,decreasegovernmentrevenue
• Inflation• Severedebt
![Page 20: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/20.jpg)
TheSecondBankoftheU.S.
• PresidentJamesMadisonsignedabillestablishingtheSecondBankoftheU.S.in1816
• OpenedinPhiladelphiainJanuary1817• 20yearcharter• $35Millionincapital• 20%Government,80%PrivateInvestors• 25Branches• FunctionedsimilarlytotheFirstBank
![Page 21: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/21.jpg)
FinancialPanicof1819• Precursors…• ImportsandExportsaftertheWarof1812• Bankexpansion– Physically– Loans
• LandExpansion• Reductioninexports
![Page 22: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/22.jpg)
FinancialPanicof1819• Contractionary Policy• Consequences– Foreclosures–Massdebt–Wageratingsdeclined– Unemployment
• Responses:landdebtrelief,speciereserveincrease,notecirculationdecrease
![Page 23: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/23.jpg)
TheEndoftheSecondBank
• RequesttorenewthecharteroftheSecondBankwassenttoCongressinJanuary1832
• ThisbillpassedboththeHouseandSenate• PresidentJacksoneventuallyvetoedtherenewal
• EconomicConsequences:– BUSbanknoteswithdrawn,landtransferred
![Page 24: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/24.jpg)
FinancialPanicof1837
• EconomicBoom:– Increaseinbusinesscorporations– Increaseinexportsandimports– Canals,roads,railroads– Landspeculation– Creditexpansion– Banksexpansion
![Page 25: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/25.jpg)
FinancialPanicof1837
• EconomicBoom:– Increaseinbusinesscorporations– Increaseinexportsandimports– Canals,roads,railroads– Landspeculation– Creditexpansion– Banksexpansion
![Page 26: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/26.jpg)
FinancialPanicof1837• SpecieCircularof1836• SpecieShortage• 1836-1837:CottonPricesFall• May1837:NYbanksrefusetotradespeciefornotes• BritishexportstotheUSdecreaseby60%• Panicensues…– Businessesfailed– Bankrunsoccur– Unemploymentrises– Farmersloseland– Paperfortuneswipedaway– Behaviorally,peopleseverelypanickedandsnowballedthecollapsingeconomy
![Page 27: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/27.jpg)
TheNationalBankAct
• 1863:AbrahamLincolnproposedanewnationalbanksystem
• 1864:TheNationalBankActisapprovedbyCongress– Developanationalbanksystem– Createnationalcurrency– EstablishasecondarymarketforTreasurysecurities
![Page 28: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/28.jpg)
PreludetotheFederalReserveAct
• Usuallylinkedtothepanicof1907– “Bankers’Panic”or“KnickerbockerCrisis”– NewYorkStockExchangefell50%YOY– Bankrunsandlackofliquidity
• Theneedforacentralbankingsystem• JacobSchiffChamberofCommercespeech
![Page 29: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/29.jpg)
Aldrich-VreelandAct
• LedbySenatorNelsonAldrichafterthepanic• Providedemergencycurrencyduringcrises• FormedtheNationalMonetaryCommission• ConferenceatJekyllIslandClub• FinalreportpublishedonJanuary11,1911• RecommendationforNationalReserveBank
![Page 30: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/30.jpg)
Glass-WillisProposal
• EstablishregionalFederalReservebanks• Createanational,elasticcurrency• Reservetherighttorediscountpapermoney• Institutesupervisionoverthebankingsystem• Improvethenationalpaymentsystem• Criticism
![Page 31: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/31.jpg)
FederalReserveAct
• IntroducedintheHouseonAugust29th,1913andpassedonSeptember18th (287-85)
• PassedtheSenateonDecember18th,1913(54-34)
• SignedintolawbyPresidentWoodrowWilsononDecember23rd,1913
![Page 32: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/32.jpg)
BuildingtheFed
• ReserveBankOrganizationCommittee:– SecretaryoftheTreasury:WilliamG.McAdoo– SecretaryofAgriculture:DavidF.Houston– ControlleroftheCurrency:JohnS.Williams
• Designatedamaxof12RegionalFedBanks• Dividedthenationintodistricts• Requiredparticipationfromallcharteredcommercialbanks
![Page 33: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/33.jpg)
StructureoftheCentralBank
• Eachhaditsownbranches,directors,andboundaries
• FederalReserveBoard
– Boston– NewYork– Philadelphia– Cleveland– Richmond– Atlanta
– Chicago– St.Louis– Minneapolis– KansasCity– Dallas– SanFrancisco
• RegionalReserveBanklocations:
![Page 34: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/34.jpg)
GreatDepression
• BankingPanicsof1930-1931• StockmarketcrashonOctober29,1929• Commercialbankcrisis– “Floating”checkscreatedfalsereserves– Immobilityinbankreserves
• ~8,000Fedmembers,~16,000non-members• BankofTennesseecollapseonNovember7th
• Ensuingbankfailuresandruns
![Page 35: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/35.jpg)
FederalReserveReaction
• Responsevariedthroughouteachdistrict– SixthDistrictinAtlanta– EightDistrictinSt.Louis– CrisisinChicago
• Deflationandcashhoarding• BankingHolidayof1933• EmergencyBankingActof1933
![Page 36: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/36.jpg)
BankingActof1933
• “Glass-SteagallAct”– Sen.CartGlassandRep.HenrySteagall
• SignedintolawonJune16,1933• MainProvisions:
1. CreationofFederalDepositInsuranceCorporation2. CreationoftheFederalOpenMarketCommittee3. Outlawandregulationofinterestspayments4. Regulated“speculation”ofbankcredit
![Page 37: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/37.jpg)
BankingActof1935
• SignedintolawonAugust19,1935• TitleI:– FDICamendments
• TitleII:– Amendmentsto“BoardofGovernors”andFOMC– Loanstomemberbanks
• TitleIII:– Technicalamendments
![Page 38: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/38.jpg)
Humphrey-HawkinsActof1978
• FullEmploymentandBalancedGrowthAct• EstablishmentofFederalReservepolicygoals– DualMandate– Unemployment&Inflation
• ScrutinyoftheFedandChairmanVolcker• Theperiodof”GreatModeration”
![Page 39: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/39.jpg)
Recessionof1981-82
• FederalReserveinterestratehike• Highinflationandunemployment• FailureofS&Lassociationin’80s• PaulVolckerandtheFedpolicy• Persistingthreatofincreasinginflation
![Page 40: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/40.jpg)
StockMarketCrashof1987
• Causesandcatalysts– Rapidgrowthofeconomycausedassetbubble– Governmentreportedtradedeficit– Financialderivatives
• Globalfinancialpanicon“BlackMonday”– Sharp22%decreaseintheDJIA
• FederalReserveResponse– ChairmanAlanGreenspan– Sourceofliquidityandsupport
![Page 41: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/41.jpg)
2007-09FinancialCrisis
• Subprimemortgageandhousingcrisis• Effectsonthefinancialsector• FederalBailouts• BearStearnsacquiredbyJPMorganin2008• LehmanBrothersbankruptcy• BankofAmericaacquiredMerrillLynch
![Page 42: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/42.jpg)
FedResponseto“GreatRecession”
• FedChairmanBenBernanke• “TooBigToFail”• Fed’ssupportofspecificinstitutions– AIG,Citigroup,BankofAmerica
• PrimaryDealerCreditFacility• Dodd-FranksignedintoeffectonJuly21,2010– StabilityoftheUSfinancialsystem– Increasedtransparencyofderivatives– FinancialStabilityOversightCouncil
![Page 43: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/43.jpg)
ModernDutiesoftheFed
• Conductthenation’smonetarypolicy– Influencingmonetaryandcreditconditions– DualMandate
• Superviseandregulatebankinginstitutions• Maintainthestabilityofthefinancialsystem• Providefinancialservicesandplayroleinoperatingthenation’spaymentssystem
![Page 44: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/44.jpg)
FedBoardofGovernors
1. JanetYellen(Chair)2. StanleyFischer(Vice-Chair)3. DanielTarullo4. JeromeH.Powell5. Lael Brainard6. Vacant7. Vacant
![Page 45: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/45.jpg)
TheFedToday
• FederalFundsTargetRate:0.25%- 0.50%• NextFOMCMeetingonNovember1-2,2016– Lastincrease:25basispointsinDecemberof2015
• Potentialratehike?
![Page 46: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/46.jpg)
BibliographyBernanke,Ben.“TheFirst100YearsoftheFederalReserve:ThePolicyRecord,LessonsLearned,andProspectsfor
theFuture.”Addressataconference10July2013,sponsoredbytheNationalBureauofEconomicResearch,Cambridge,MA.Davis,AndrewMacFarland.SupplementtoTheOriginoftheNationalBankSystem.Washington:GovernmentPrinting
Office,1911.FederalReserveBoard.TheFederalReserveSystem:Purposes&Functions.Washington:FederalReserveSystem,
2005.FederalReserveBankofPhiladelphia.“TheFirstBankoftheUnitedStates:AChapterintheHistoryofCentral
Banking.”June2009.AccessedonSeptember22,2016.https://www.philadelphiafed.org/-/media/publications/economic-education/first-bank.pdf?la=en .
FederalReserveBankofPhiladelphia.“TheSecondBankoftheUnitedStates:AChapterintheHistoryofCentralBanking.”December2010.AccessedonSeptember22,2016.https://www.philadelphiafed.org/-/media/publications/economic-education/second-bank.pdf?la=en .
Gordon,JohnSteele.“AShortBankingHistoryoftheUnitedStates.”TheWallStreetJournal.October10,2008.AccessedonSeptember22,2016.http://www.wsj.com/articles/SB122360636585322023 .
HarvardBusinessSchool.“1837:TheHardTimes.”HarvardBusinessSchoolHistoricalCollections.AccessedonOctober2,2016.http://www.library.hbs.edu/hc/crises/1837.html.
History.com Staff.“Warof1812.”2009.AccessedonSeptember22,2016.http://www.history.com/topics/war-of-1812 .
Holland,Brynn.WomantobeFeaturedontheNewlyRedesigned$10Bill,TreasuryAnnounces.July15,2015.AccessedonSeptember22,2016.http://www.history.com/news/woman-to-be-featured-on-newly-redesigned-10-bill-treasury-announces .
![Page 47: History of The U.S. Federal Banking Systemkarlshell.com/wp-content/uploads/2016/08/History... · • One quarter of payment had to be in the form of gold, ... – AIG, Citigroup,](https://reader035.vdocuments.net/reader035/viewer/2022071110/5fe56cfa940c543d901ae00f/html5/thumbnails/47.jpg)
BibliographyContinuedJohnson,Roger.HistoricalBeginnings… TheFederalReserve. Boston:PubicandCommunityAffairsDepartment,2010.Magness,Phil.Hamilton.AccessedonSeptember22,2016.http://philmagness.com/wp-
content/uploads/2015/06/Hamilton.jpg .OfficeoftheComptrolleroftheCurrency.“NationalBanksandtheDualBankingSystem.”ComptrolleroftheCurrency
AdministratorofNationalBanks.September2003.AccessedonSeptember22,2016.https://www.occ.gov/publications/publications-by-type/other-publications-reports/national-banks-and-the-dual-banking-system.pdf .
Rothbard,MurrayN.ThePanicof1819:ReactionsandPolicies. Auburn,Alabama:LudwigVonMisesInstitute,2007.Smith,RobertF.“BankofNorthAmerica.”TheEncyclopediaofGreaterPhiladelphia.AccessedonSeptember22,2016.
http://philadelphiaencyclopedia.org/archive/bank-of-north-america/ .Sperling,John.GreatDepressions:1837-1844,1893-1898,1929-1939.UnitedStatesofAmerica:Scott,Foresman and
Company,1966.Sylla,Richard.“TheUSBankingSystem:Origin,Development,andRegulation.”TheGilderLehmanInstituteof
AmericanHistory.AccessedonSeptember22,2016.https://www.gilderlehrman.org/history-by-era/economics/essays/us-banking-system-origin-development-and-regulation .
Symons,EdwardL.“TheUnitedStatesBankingSystem.”BrooklynJournalofInternationalLaw,VolumeXIX:I (1993):1-46.
Taylor,Bryan.“ThePanicof1792.”AccessedonSeptember30,2016.https://www.globalfinancialdata.com/gfdblog/?p=3462.
Teitelman,S.Robert.“BankofPennsylvania,SouthSecondStreet.”AccessedonSeptember22,2016.http://www.ushistory.org/birch/plates/plate27.htm .
Wilson,Janet.“TheBankofNorthAmericaandPennsylvaniaPolitics:1781-1787.”ThePennsylvaniaMagazineofHistoryandBiography,Vol.66No.1(Jan.1942):3-28.