Banking/Timelines

The early years

1244 Genoa's Leccacorvo bank[1]

1609 Amsterdam Wisselbank founded[2] - the first central bank.

1694 Formation of the Bank of England[3]

The 19th century

1833 (UK) Repeal of the Usury Laws

1844 UK Bank Charter Act[4] - gives the Bank of England the exclusive right to issue banknotes

1863 US National Bank Act[5][6] - creates a national currency system and sets reserve ratio requirements for state and federal banks.

1866 UK:The Overend-Gurney collapse causes banking panic [7]

1890 UK: The Barings crisis. Bank of England organises rescue of Barings bank by Rothschilds[8] - and becomes the banking system's lender of last resort

1850-1907 US: Bank runs in 1857, 1873, 1884, 1890, 1893, (and 1907} [9]

The 20th century

1913 US National Reserve Act creates the Federal Reserve System

1930-33 The Banking crises of the Great Depression

1933 The Banking Act of 1933 creates The Federal Deposit Insurance Corporation[10]

US The Glass-Steagall Act [11]

1980 US Depository Institutions Deregulation and Monetary Control Act[12] - a deregulatory measure that made possible the subprime mortgage crisis [13].

1982 US Garn-St. Germain Depository Institutions Act of 1982 [14] -relaxed restriction on the kinds of loans thr banks may make.

1986 UK Building Societies Act[15]

1988 Basel I[16] (The Basel Capital Accord)

1989 US Financial Institutions Reform, Recovery, and Enforcement Act[17]

1995 UK Barings bank failure [18].

1995 :Basel II [19] (Revised International Capital Framework)

1999 US Gramm-Leach-Bliley Act[20] - repealed the Glass Steagall Act of 1933, and introduced other changes including expanding the Federal Home Loan Bank System.

The 21st century

2002

US Sarbanes-Oxley Act[[21]

2005

2007

US house prices fall to 8% below 2006 peak [22].

US house mortgage payment defaults and foreclosures [23].

The values of bank assets suffer large reductions (including the assets of the Bank of America and Citigroup banks in the US, the Barclays and HSBC banks in the UK, the BNP Paribas bank in France, and Credit Suisse bank in Switzerland.

The French bank BNP Paribas freezes funds because it is unable to value its US mortgage-backed assets. [24] triggering a collapse of the interbank market [25].

International financial panic

2008

March

The Bear Stearns investment bank is bought by J P Morgan Chase & Co for $2 a share[26] [27] (with $30 billion support from the Federal Reserve).

April

The Bank of England announces its Special Liquidity Scheme[28] (to allow banks to swap temporarily their high quality mortgage-backed and other securities for UK Treasury Bills)

September

The Lehman Brothers investment bank is bankrupt [29] with losses of $365 billion to insurers of its bonds.

Money market confidence collapses: LIBOR-OIS spreads rise to over 200 basis points (compared with pre-crisis rates of around 10 points)[30]

Global banking crisis and recession

October

3 The $700 billion Paulson Plan (Toxic Assets Relief Plan, TARP) is approved by Congress [31].

2009

February

The UK Banking Act 2009[32] (including the Special Resolution Regime[[33]

March

The Federal Reserve Board announces its "Term Asset-backed Loan Facility" (TALF)[34].

The Federal Reserve Board plans to increase the size of its balance sheet to a total of up to $200 billion. [35]

July

"Basel 3": Enhancements to the Basel II framework[36][37]

November

Lloyds Banking Group issues a contingent convertible bond[38].

December

Basel Committee consultative proposals[[39]

2010

January

President Obama proposes the introduction of the "Volcker Rule".

.