Banking in the United States began in the late 1790s along with the establishment of the state and has evolved into a highly influential and complex banking and financial services system. Anchored by New York City and Wall Street, centers in various financial services such as private banking, asset management, and deposit safety.
The earliest remnants of the banking industry could be traced to 1790 when the Bank of Pennsylvania was founded to fund the American Revolutionary War. After merchants from the Thirteen Colonies needed currents as a medium of exchange, the Bank of North America opened to facilitate more financial transactions.
In 2017, the largest banks of the United States are JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs. It is estimated that banking assets are equivalent to 56 percent of the US economy.
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History
In the early 1700s, merchants traveled from England to the United States and founded Bank of Pennsylvania in 1790 to fund the American Revolutionary War (1775-1783). During this time, the Thirteen Colonies have not formed a currency and use informal trading to finance their daily activities. On January 4, 1782, the first commercial bank in the US, Bank of North America, was opened. Soon after US Treasury Secretary Alexander Hamilton created the United States Bank (1798), a national bank intended to keep American taxes and pay off foreign debts. After President Andrew Jackson closed the bank in 1832 and transferred all bank assets to US state banks. State banks started printing fast money triggering runaway inflation and leading to Panic of 1837. Investment banking began in the 1860s with the establishment of Jay Cooke & The company, one of the first government bond issuers. In 1863, the National Bank Act was passed making the national currency, the federal banking system, and make public borrowing. During the 1900s, the Federal Reserve was established and began executing monetary policy. The Great Depression sees a separation between investment and commercial banking known as the "Glass-Steagall Act". In 1991, the law was lifted leading to the financial crisis of 2008.
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Regulatory Bureau
Although most of these countries have only one bank manager, in the US, banks are set at federal and state levels. Depending on the type of charter and organizational structure, the banking organization may be subject to federal and state banking regulations. Unlike Switzerland and the United Kingdom (where the top regulatory authorities of banks, securities and the insurance industry are combined into a single financial services agency), the US maintains separate securities, commodities, and regulatory bodies - separate from the bank regulatory body - at the federal and States. US banking regulations deal with privacy, disclosure, fraud prevention, anti-money laundering, anti-terrorism, usury loans, and loan promotion to low-income residents. Some individual cities also enact their own financial regulatory rules (for example, defining what is a usury loan).
Federal Reserve System
The central banking system of the United States, called the Federal Reserve system, was created in 1913 by the enactment of the Federal Reserve Act, largely in response to a series of financial panic, especially the severe panic of 1907. Over time, the roles and responsibilities of the Federal Reserve System has expanded and its structure has evolved. Events such as the Great Depression are the main factors that cause changes in the system. His job today, according to official Federal Reserve documentation, is to conduct state monetary policy, oversee and regulate banking institutions, maintain financial system stability and provide financial services to depository institutions, US government, and foreign official institutions.
Federal Deposit Insurance Corporation
The Federal Deposit Insurance Corporation (FDIC) is a US government company created by the Glass-Steagall Act of 1933. It provides deposit insurance, which guarantees the security of deposits in member banks, to $ 250,000 per depositor per bank. On November 18, 2010, FDIC secured deposits in 6,800 institutions. The FDIC also examines and monitors certain financial institutions for safety and health, performs certain consumer protection functions, and manages banks in curators (failing banks). Since the inception of FDIC insurance on January 1, 1934, no depositors lost the insurance fund as a result of bank failure.
Currency Finance Supervisory Office
The Office of the Currency Finance Supervisor is a US federal institution established by the National Currency Act of 1863 and serves to charter, regulate and oversee all national banks and federal branches and foreign bank institutions in the United States. Thomas J. Curry is sworn in as Supervisor of 30 Currencies on April 9, 2012.
Office of Thrift Supervision
The Office of Supervision of Goods is a US federal agency under the Ministry of Finance. It was made in 1989 as a renamed version of another federal agency (blamed for its role in the Savings and loan crisis). Like other US federal bank regulators, this is paid by the bank that governs it. On July 21, 2011, the Office of Supervision of Used Goods became part of the Currency Supervisory Office.
Merge and bank closures
Bank mergers occur for various reasons in normal business, for example, to create a larger bank in which the operations of both banks can be simplified; to obtain another bank brand; or because the regulator closes the institution due to unsafe and unhealthy business practices or inadequate capitalization and liquidity. Banks may not go bankrupt in the United States. Depositors' accounts are insured up to $ 250,000 per October 2008 per individual per bank by FDIC. Banks that are in danger of failure to be taken over by the FDIC, are temporarily managed, then sold or merged with other banks. The FDIC has a list of banks showing agencies seized by regulators and institutions that assume.
Banking privacy
In the United States, banking privacy and information security are not protected through a single law nor are rights that can not be revoked. Banking privacy settings are usually done by sector by sector. The most prominent federal law governing banking privacy in the US is the Gramm-Leach-Bliley Act (GLB). It regulates disclosure, collection, and use of non-public information by banking institutions. In addition, the Federal Trade Commission (FTC) serves as the primary protector of banking privacy by fining federal and state banking law offenders. Unlike banks in Switzerland or other European countries, the violation of banking privacy is usually a non-criminal civil offense.
List of banks
According to the FDIC, there are 6,799 commercial banks guaranteed by the FDIC in the United States on February 11, 2014. Each member of the Federal Reserve System is registered together with non-members who are also insured by the FDIC. The five largest banks by assets in 2011 are JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs.
See also
- Financial services in the United States
- Banking in Switzerland
- Banking in Germany
- Banking in the United Kingdom
References
Bibliography
- Rothbard, Murray Newton (1983). Banking Mystery . New York, N.Y.: Richardson & amp; Snyder. ISBN 978-0-943940-04-5. OCLCÃ, 56139773 Rothbard, Murray Newton (2002). History of Money and Banking in the United States: The Colonial Era for World War II . Auburn, Ala.: Ludwig von Mises Institute. ISBN: 0-945466-33-1. OCLCÃ, 51205107
- Lisa, Sotto (2014). Banking Privacy in the United States . New York City, New York: Hunton & amp; Williams. pp.Ã, 191-198.
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