ECON 321 Matching

1913: The Federal Reserve Act

created the Federal Reserve System

1927: The McFadden Act

prohibited interstate banking

1933: The Glass- Steagall Act

Established the FDIC as a temporary agency, separated commercial and investment banking, established Regulation Q interest rate ceilings, and set the interest rate ceiling on demand deposits at 0 percent.

1935: The Banking Act

Established the FDIC as permanent agency

Community Reinvestment Act

Legislation passed by congress in 1977 to increase the availability of credit to economically disadvantaged areas and to correct alleged discriminatory lending practices.

1999: The Gramm- Leach-Bliley Act (GLBA)

allowed banks, insurance companies, securities firms, and other financial institutions to affiliate under common ownership and to offer a complete range of financial services that had been previously prohibited; created financial holding companies (FHCs) that could engage in financially related activities, other financial activities, and complementary nonfinancial activities; expanded allowable activities for banks and their subsidiaries; and repealed key provisions of the 1933 Glass- Steagall Act that separated commercial and investment banking.

1994: The Interstate Banking and Branching Efficiency Act (IBBEA)

allowed virtually unimpeded interstate branching by adequately capitalized and managed banks that meet CRA requirements.

1989: The Financial Institutions Recovery, Reform, and Enforcement Act (FDICIA)

abolished the "too-big-to-fail" policy; limited brokered deposits; established new capital requirements for banks; established risk-based insurance premiums; gave the FDIC new powers to borrow from the U.S. Treasury; restricted activities of foreign banks; and insured state banks.

Basel Accord

A 1988 agreement among 12 countries that established international capital standards for banks.

Dodd-Frank

A compendium of federal regulations, primarily affecting financial institutions and their customers, that the Obama administration passed in 2010 in an attempt to prevent the recurrence of events that caused the 2008 financial crisis. The Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly referred to as simply "Dodd-Frank", is supposed to lower risk in various parts of the U.S. financial system. It is named after U.S. Senator Christopher J. Dodd and U.S. Representative Barney Frank because of their significant involvement in the act's creation and passage.

1980: The Depository Institutions Deregulation and Monetary Control Act (DIDMCA)

Authorized NOW accounts nationwide, therby ending the monopoly of commercial banks on checkable deposits; phased out Regulation Q; established uniform and universal reserve requirements; granted new powers to thrifts; eliminated usury laws; and increased deposit insurance from $40,000 to $100,000 per account