pet banks

(noun)

A pejorative term for state banks selected by the U.S. Department of Treasury to receive surplus government funds in 1833.

Related Terms

Examples of pet banks in the following topics:

  • The Second Bank of the United States

    • The Second Bank of the United States was chartered in 1816, five years after the First Bank of the United States lost its own charter.
    • The Second Bank of the United States, like the First Bank before it, was created as part of the American System of economics.
    • Jackson struck at this vital source of funds in 1833 by instructing his Secretary of the Treasury to deposit federal tax revenues in state banks, soon nicknamed "pet banks" because of their loyalty to Jackson's party.
    • Nicholas Biddle, desperate to save his bank, called in all of his loans and closed the bank to new loans.
    • In 1836, the Bank's charter was allowed to expire.

  • The Bank War and Economic Boom

    • The Bank War refers to the political struggle that developed over the issue of rechartering the Second Bank of the United States (BUS) during the Andrew Jackson administration (1829-1837).
    • Pro-Bank interests warned the public that Jackson would abolish the Bank altogether if granted a second term.
    • Biddle had believed that this would highlight the need for a central bank.
    • Jackson's campaign against the Bank had triumphed.
    • After removing federal funds from the bank, Jackson placed the money in so called "pet banks," which were privately owned.

  • Emission Topography

    • Positron emission tomography (PET) is a nuclear medical imaging technique that produces a three-dimensional image or picture of functional processes in the body.
    • Because PET imaging is most useful in combination with anatomical imaging, such as CT, modern PET scanners are now available with integrated high-end multi-detector-row CT scanners .
    • PET scanning is non-invasive, but it does involve exposure to ionizing radiation.
    • However, in modern practice, a combined PET/CT scan is almost always performed, and for PET/CT scanning, the radiation exposure may be substantial—around 23–26 mSv (for a 70 kg person—dose is likely to be higher for higher body weights).
    • PET/CT-System with 16-slice CT; the ceiling mounted device is an injection pump for CT contrast agent.

  • A Bank Failure

    • A bank failure is a bank develops financial problems and fails.
    • Moreover, the bank could sell loans to other banks.
    • Bank borrows the funds from the central bank or from another commercial bank.
    • How does a bank prevent a bank failure?
    • Your bank could ask other banks for a loan, but other banks may decline if they believe your bank will fail.

  • Online Direct Banks

    • A direct bank is a bank without any branch network.
    • Direct banks were originally based on providing banking services via telephone.
    • Upon realizing this, traditional banks began to offer limited online banking services.
    • The initial success of internet banking services provided by traditional banks led to the development of internet-only banks or "virtual banks. " These banks were designed without a traditional banking infrastructure, a cost-saving feature that allowed many of them to offer savings accounts with higher interest rates and loans with lower interest rates than most traditional banks.
    • One of the first fully functional direct banks in the United States was the Security First Network Bank (SFNB).

  • The Glass Steagall Banking Act

    • This law divided the functions of investment banking and commercial banking.
    • First, the FDIC closes the bank and seizes the bank's assets.
    • Next, the FDIC keeps the bank open and searches for another bank that will buy the failed bank.
    • The FDIC also allows a bank to cross a state line to buy a failed bank.
    • Contagion is a bank run on one bank leads to bank runs on other banks.

  • Becoming an International Bank

    • Banks in the United States use four methods to become an international bank, which are:
    • Method 1: The U.S. bank opens a bank branch in a foreign country.
    • Bank branches help the bank transfer money across nations' borders.
    • The U.S. bank buys and becomes a majority shareholder of a foreign bank.
    • Method 4: The U.S. bank creates an international banking facility (IBF).

  • Brain Imaging Techniques

    • EEG, PET, MRI, and fMRI scan the brain through a variety of methods and have varying degrees of specificity and invasiveness.
    • Four of the most common types of brain scans are EEG, PET, MRI, and fMRI.
    • However, with PET scans, we can only locate generalized areas of brain activity and not specific locations.
    • In addition, PET scans are costly and invasive, making their use limited.
    • This is a view of the PET scanner from the outside; the radiation detectors are under the covering panel.

  • The United States Banking System

    • As of 2010, the United States had roughly 1,500 national banks and 50 foreign national banks.
    • Moreover, the Fed regulates banks.
    • The United States had 14,217 banks in 1986, which fell to 9,459 banks by 2010.
    • Unit banking restricts a bank to a single geographical location, such as in one city, and the bank cannot branch to other cities.
    • Furthermore, branch banking allows a bank to have two or more banking offices owned by a single banking corporation within a geographical area.

  • Electronic Banking

    • Electronic banking includes such services as ATMs, direct deposits, electronic fund transfers, and online banking.
    • Possibly the most popular advance in banking through the use of technology is online banking.
    • Online banking services include:
    • Banks have found online banking so much cheaper than traditional in-bank methods that some have encouraged depositors and other customers to bank from home or via machines by charging them fees for the privilege of talking to a teller!
    • So-called click-and-mortar, or hybrid, banks appear more viable than completely virtual banks at present.