Chapter 10 Outline

Chapter 10 Outline - Click to edit Master subtitle style...

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Unformatted text preview: Click to edit Master subtitle style 5/12/09 Department of Department of Chapter 10: Banking Industry: Structure and Competition Econ 330: Money and Banking Fall 2007 Prof. Joseph Santos This outline draws from Frederic Mishkins Money, Banking and Financial Markets (2007) and, as such, contains copy written material. Please do not quote without proper citation. 5/12/09 Department of Department of [1] History of U.S. Banking in the Eighteenth and Nineteenth Centuries A major controversy in the banking industry in its early years was whether the federal government or the states should charter banks. The Federalists, particularly Alexander Hamilton, advocated greater centralized control of banking and federal chartering of banks. Agricultural and other interests were quite suspicious of centralized power and hence advocated chartering by the states. Bank of the U.S (1791) and the Second Bank of the U.S. (1816) The National Bank Act of 1863 created a new banking system of federally chartered banks (national banks), supervised by the Office of the Comptroller of the Currency, a department of the U.S. Treasury. Dual-banking system [1] History of Banking in the 18th and 19th Centuries [2] History of Banking in the 20th Century [3] Regulatory Agencies [4] Financial Innovation [5] Responses to Demand [6] Responses to Supply [7] Avoidance of Regulations [8] Structure of U.S. Banking [9] Bank Consolidation [10] Banking and Securities Industries Consolidation [11] Banking and Securities Industries in Other Countries This outline draws from Frederic Mishkins Money, Banking and Financial Markets (2007) and, as such, contains copy written material. Please do not quote without proper citation. 5/12/09 Department of Department of [2] History of U.S. Banking in the Twentieth Century Central banking and the Federal Reserve System (1913) All national banks were (are) required to join the Fed and were (are) subject to Fed regulation. State banks could (can) choose to become members of the system, and most did (have) not because of the high costs of membership stemming from the Feds regulations. Deposit insurance and the Federal Deposit Insurance Corporation (1933) Members of the Federal Reserve System were (are) required to purchase FDIC insurance; non-members could (can) choose to purchase the insurance, and most of them did (do). Underwriting prohibitions and the Glass-Steagall Act (1933) In effect, the Glass-Steagall Act separated the activities of commercial banks from those of the securities industry. The Glass-Steagall Act was effectively repealed in 1999. [1] History of Banking in the 18th and 19th Centuries [2] History of Banking in the 20th Century [3] Regulatory Agencies [4] Financial Innovation [5] Responses to Demand [6] Responses to Supply [7] Avoidance of Regulations [8] Structure of U.S. Banking [9] Bank Consolidation [10] Banking and Securities Industries Consolidation [11] Banking and Securities...
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This note was uploaded on 04/09/2008 for the course ECON 330 taught by Professor Santos during the Spring '08 term at SD State.

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Chapter 10 Outline - Click to edit Master subtitle style...

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