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Shuhao Liu. Money And Banking. Dr. Sue Lynn Sasser. February

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Shuhao Liu
Money and Banking
Dr. Sue Lynn Sasser
February 10,2017
Summary of Legislations the National Banking Act of 1863:In 1863, the United States passed the National Bank Act, trying to provide a national constitution that would cover all banks. This Act stipulates that 25% is the statutory reserve ratio of bank deposits. In 1863, Lincoln needed more green money to win the war. So he made an important compromise, signed the 1863 national banking act. The act authorizes the government to approve the issuance of uniform bank notes by the state bank, which will issue the national currency of the United states. It is vital that these banks in U.S. government bonds as issued bank notes reserves. Actually the currency of the United States
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They have grown from large commercial banks. Based on the experience of loan settlement in 1920-1921, businessmen are reluctant to borrow from banks, which may lead to a decline in the importance of commercial credit in 1920s. the Glass-Steagall Act: After the great crisis in 1930s, the United States legislation, investment banking and commercial banking business strictly separate. To ensure that commercial banks to avoid the risk of the securities industry. The Act prohibits Bank Underwriting and securities business which can only be purchased by the Fed approved bonds.
It is pointed out by Democratic Senator Carter Glass and Congressman Henry B of the street. Its content, such as allowing the Federal Reserve System to regulate the interest of the storage account. It was lifted by the savings institutions deregulation and monetary control act of 1980. The Financial Services Modernization Act, which prohibits Banking Holding Company from owning other financial firms. It was cancelled in November 12, 1999.
The cancellation in 1999, in effect, it has removed the risk that the investment banks are insulated from the commercial banks that have been stored. Making it possible for investment bankers to become the bosses of commercial banks, and thus cause conflicts of interest. the Riegel-Neal Act: It allows banks to set up branches and mergers across the states. Creating a new era of bank mergers that focus on cost reduction and profitability. As a
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