notes 11-12-09

notes 11-12-09 - 11/12/2009 171A CH18 Commercial Banking...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
11/12/2009 171A CH18 Commercial Banking Modern US CB (commercial Banking) – started in 1782 B of NOAm in Philadelphia Dislike of centralized power in US Bank of US 1791 – 1811 2 nd Bank of US 1816 – 1836 - No national currency until 1863 banknotes as currency – redeemable to gold 1863: National Banking Act – Comptroller of the currency – National Charters - States also chartered banks 1913 the FED 1930: 9000 Banks failed - Loss of trust in bank - Deposits moved to mutual bank 1933 FDIC (insurance of deposits) – insurance up to $250k now 1933 – Glass steagall ACT: separation of regular banking (commercial banking) from investment banking - Act repealed in 1999 (Gramm, Regulation: office of comp. of currency (US tra) Supervises 1800 national banks + 900 state banks member of the FED FDIC + States supervise 5000 state banks not Fed member States supervise banks not insured by FDIC Financial innovations – take palce in response to 1. Demand conditions – interest rates are more volatile – new products to reduce risk: ARM,
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

notes 11-12-09 - 11/12/2009 171A CH18 Commercial Banking...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online