Between 1836 and 1913, the United States banking system was not regulated by a central system. During this period, the United States economy experienced few financial panics. That happened because banks usually lent more money than they had in their reserves to cover sudden massive withdrawals. The signing of the Federal Reserve Act on December 23, 1913 was an important step taken by President Woodrow Wilson to make the financial system more stable. However, few years later, despite the creation of the Federal Reserve System, the United States experienced the Great Depression after the crash of the stock market in 1929.
http://www.llsdc.org/attachments/files/105/FRA-LH-PL63-43.pdf
It is essential to say that the Federal Reserve is composed of 13 regional federal banks among them the regional federal reserve bank of New York, the regional federal reserve bank of Pennsylvania, and the regional federal bank of Illinois. I think that the primary source skips that part.
The Federal Reserve was created in 1913 under president Woodrow Wilson. This giant structure is composed of thirteen regional federal banks among them the federal bank of New York, federal bank of Pennsylvania, and federal bank of Illinois. This primary source skips this important part of the federal reserve.
I believe that the Federal Reserve act of 1913 was the biggest scam in the American History. The central Bank is owned by J.D. Rockefeller, J.P. Morgan, Paul Warburg and Baron Rothschild, and not the Government. How can be privite families have power to print money? Today, they say that the Fed is quasi-government. when thing goes wrong they blame BEN BERNANKE the chairman of Federal Reserve, but nobody say nothing about the privite side of the bank who has perpetuate in power. Even Woodrow Wilson has regretted for having signed the Federal Reserve Act.
This is the important part of History. This also reminds us the current banking financial downfall situations. The banking mortgage in 2008 to 2009.
Federal Regulation is a much debated topic. I’m more in favor of an administration that stresses government regulations than not. Deregulation leads to corporate giants but has overall improved service and lowered costs. I believe it is a fine line and that there should be a well established balance between regulation and deregulation.
This is the important part of the history, as it is somewhere similar to the current situations of banking system. The banks in 2008 to 2009 lended more money in mortgages and home loans. This created in the downfall of big banks.