Second Bank of the United States

Examples of Second Bank of the United States 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.
  • For these reasons, Madison and Congress agreed to form the Second Bank of the United States.
  • This meant that the Baltimore branch of the Second Bank of the United States would have to pay this hefty tax.
  • The Second Bank of the United States soon began to lose money.

• Jackson's Democratic Agenda

  • Jacksonian democracy was built on the general principles of expanded suffrage, manifest destiny, patronage, strict constructionism, Laissez-Faire capitalism, and opposition to the Second Bank of the United States.
  • Jackson said that he would guard against "all encroachments upon the legitimate sphere of State sovereignty. " This is not to say that Jackson was a states' rights extremist; indeed, the Nullification Crisis would find Jackson fighting against what he perceived as state encroachments on the proper sphere of federal influence.
  • This position was one basis for the Jacksonians' opposition to the Second Bank of the United States.
  • The Jacksonians opposed government-granted monopolies to banks, especially the central bank known as the Second Bank of the United States.
  • Democratic cartoon from 1833 showing Jackson destroying the bank, to the approval of the Uncle Sam-like figure to the right and the annoyance of the bank's president, depicted as the Devil.

• Bankers and Lawyers

  • The role of banks in the United States during the Market Revolution was an extremely divisive issue.
  • The role of banks in the United States during the Market Revolution was an extremely divisive issue.
  • The Second Bank of the United States, chartered in 1816, played a major role in the controversies of this period.
  • Nicholas Biddle was an American financier who served as president of the Second Bank of the United States and was a political target of President Andrew Jackson.
  • Analyze the Second Bank of the United States' role in American politics of the early 19th century

• The Bank War and Economic Boom

  • In the presidential campaign of 1832, the Bank of the United States was the issue dividing Jacksonian Democrats from National Republicans.
  • 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.
  • In the second of two letters addressed to John Quincy Adams dated November 10, 1836, Biddle decried the loss of the bank and claimed that it had allowed the American financial system to remain stable.
  • This 1836 satire depicts President Jackson's campaign to destroy the Second Bank of the United States.

• Financial Innovation

  • Second innovation, nonbank bank, allows banks to circumvent federal and state regulations.
  • Furthermore, many banks created networks, so customers could access their accounts from any place within the United States and across the world.
  • Political climate was changing in the United States before the 2008 Financial Crisis.
  • First, banks can acquire other banks, reducing the number of banks in the United States.
  • Second, as banks merge, they become bigger as their assets grow.

• The Glass Steagall Banking Act

  • Thus, the United States government passed the Glass-Steagall Banking Act in 1933.
  • The United States government repealed pieces of the Glass-Steagall Act in 1999 to allow U.S. investment banks to compete internationally as they moved into commercial banking and insurance.
  • Second, theFDIC purchases and assumes control of the failed bank.
  • The FDIC also allows a bank to cross a state line to buy a failed bank.
  • Although federal law prohibited banks from crossing state lines and opening banks in another state, the federal government did not hesitate to violate its own rules when it needed to.

• The United States Banking System

  • Early in the United States history, the public and government feared big banks, so state and federal governments passed regulations that forced banks to be smaller and encouraged a large number of banks to form.
  • The United States, furthermore, has a dual banking system.
  • As of 2010, the United States had roughly 1,500 national banks and 50 foreign national banks.
  • Federal Reserve System (Fed) is the central bank of the United States and the lender of the last resort.
  • However, this law kept small inefficient banks in business, causing the United States to have the largest number of banks in the world.

• Regulatory Oversight

  • Consequently, twelve countries, including the United States met in Switzerland to discuss capital requirements.
  • For instance, deposit insurance in the United States insures up to $250,000 for each person.
  • Second, only three countries in Europe, Netherlands, Spain, and United Kingdom, have laws requiring the government to step in and fund the deposit insurance if the insurance premiums cannot cover all accounts during a bank failure.
  • The United States and many countries were deregulating, when the 2008 Financial Crisis struck the world economy.
  • The U.S. government purchased preferred stock in the largest banks in the United States, infusing the banks with funds.

• Online Direct Banks

  • One of the world's first fully functional direct banks was First Direct, which launched in the United Kingdom on October 1, 1989.
  • The commercialization of the Internet in the early 1990s was the biggest driver in the creation of direct banking models.
  • 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).
  • Though SFNB did not make much profit in its initial years, it demonstrated that the concept of direct banking could work.

• Discount Policy

  • Fed's second monetary policy tool is the discount policy.
  • The FDIC purchased 80% of the bank's stock and elected new management.
  • During the 2008 Financial Crisis, the Fed had granted up to $2 trillion in loans to prevent some of the largest banks and financial companies in the United States from failing.
  • Second, the Fed creates the announcement effect, when the discount rate unexpectedly changes.
  • Thus, the Fed calms the financial markets by stating its discount policy.