FINC 409 Lecture Notes - Lecture 4: Federal Housing Administration, Quantitative Easing, Excess Reserves
25 Sep 2016
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Banking systems are supposed to provide people with a safe and stable national currency. For any country"s financial system to be effective, it should support a monetary system that efficiently carries out the important financial functions of creating and transferring money. The us banking system prior to the fed. Thomas jefferson: disliked banks, felt they were the symbol of concentrated power: wants power to remain in the hands of the people. Alexander hamilton: wanted to establish a central bank, like the bank of england. 1791: the first bank of the united states was chartered: the charter was not renewed in 1811, so the first bank disintegrated. 1816: the second bank of the united states was chartered for 20 years. The us experienced major financial panics in 1819, 1837, 1857. When the charter of the second bank of the united states was not renewed in 1836, we entered the state bank era known as the wildcat era.
