Slides 5-7 Flashcards
The year 1907 saw a ___, and an bank/organization called the ___ went bankrupt.
An unsettled, declining market, budget crisis in NYC and economic fallout in San Fransisco (earthquake). The Knickerbocker Trust, fear of a Ponzi scheme.
In 1908, the ___ Commission led by ___ was created; the plan called for a ___ Association. The secret meeting was held at ___.
National Monetary Commission, Nelson Aldrich, National Reserve Association, Jekyll Island.
A key event leading to America’s financial reform was the election of ___ in ___, who opposed ‘Money Trusts’ or any plan which concentrates control in the hands of banks. In response, suggested to him was the ___ proposal, which called for the creation of twenty or more regional reserve banks.
Woodrow Wilson, 1912, Glass-Willis Proposal
The Federal Reserve Act of ___, “Provided for the establishment of Federal Reserve Banks, to furnish an ___ currency, to afford the means of ___ ___ ___, to establish a more effective supervision of banking in the US”
1913, elastic, re-discounting commercial paper
A “haircut” is synonymous with ___.
Re-discounting commercial paper (e.g. putting up a $100 collateral IOU to support a discount window loan or $98 or a 2% ‘haircut’
The Reserve Bank Organization Committee (Act) would designate no less than ___ but no more than ___ cities to be federal reserve cities, and then divide the nation into ___.
No less than eight, but no more than twelve, districts
William McAdoo was ___ in the ___ District, who with Agriculture Seceretary David Houston believed that European central banks should deal with the Federal Reserve System as ___.
Treasury Secretary, New York, as a whole rather than with just one of its parts.
The 1st President (Governor) of the FRBNY was ___ in ___. And the 1st Chairman of the Fed Reserve Board was ___ from ___ to ___ (prior he was the Assistant ___).
Benjamin Strong, 1914, Charles Hamlin from 1914 to 1916, prior he was the Assistant Secretary of Treasury
There was a bank rush in the 1930s. FDR passed the ___ Banking Act, which opened banks according to class. Class A banks were ___, Class B banks were ___, and Class C were ___.
Emergency Banking Act, Solvent, Endangered/Weakened, Insolvent/Not Allowed Open
The Glass-___ Act of ___ banned commercial banks from ___ and also established the ___.
Steagall Act of 1933, Underwriting Securities, FDIC
Eccles proposed ___ to relieve ___ and direct relief measures such as ___, ___, and ___.
Public Works, Relive Unemployment, Minimum Wage, Unemployment Insurance, and Old Age Pensions
A.P. Giannini (Good Looking Guy) opened the Bank of ___, and became the first to offer services to the ___-class rather than simply the ___-class. He supported ___ and the ___ Act, which ___ the Fed Reserve
Italy and then America, Middle-Class vs Upper-Class. Marriner Eccles, Banking Act of 1935, Reorganized
Eccles sponsored the ___ Act of ___. The support of ___ was key to the passage of this act, and FDR appointed ___ as Chairman of the Fed.
Banking Act of 1935, Giannini, Eccles
The Banking Act of 1935 eliminated the requirement for the ___ and ___ to serve on the Board and shifted power from ___ to ___.
Secretary of the Treasury and Comptroller, From the Reserve Banks to the Board of Governors
In 1936 the Federal Reserve increased Reserve Requirements as an approach to ___ a portion of the ___ of excess reserves, but indicated that easy policy would continue.
Sterilize, Abundance
