Test 3 Flashcards
Federal Reserve Act 1913
Created the Federal Reserve System
Mcfadden act 1927
Effectively prohibited banks from branching across state lines. Put national and state banks on equal footing regarding branching
banking acts of 1933 (Glass-Steagall) and 1935
Created the FDIC. Separated commercial banking from the securities industry. Prohibited interest on checkable deposits and restricted such deposits to commercial banks. Put interest rate ceilings on other deposits
Investment company act of 1940 and investment advisers act of 1940.
Regulated investment companies, including mutual funds. regulated investment advisers
Securites act of 1933 and securities exchange act of 1934
Required that investors receive financial information on securities offered for public sale. prohibited misrepresentations and fraud in the sale of securities. Created the Securities and Exchange Commission
Bank Holding Company Act and Douglas Amendment
Clarified the status of bank holding companies
Gave the federal reserve regulatory responsibility for bank holding companies
Depository institutions deregulation and monetary control act of 1980
Gave thrift institutions wider latitude.
Approved NOW and sweep accounts nationwide.
Phased out interest rate ceilings on deposits.
Imposed uniform reserve requirements on depository institutions.
Eliminated usury ceilings on loans
Increased deposit insurance to 100,000 per account
Depository institutions ct of 1982 (Garn-St. Germain)
Gave the FDIC and the FSLIC emergency powers to merge banks and thrifts across state lines. Allowed depository institutions to offer money market deposit accounts. Granted thrifts wider latitude in commercial and consumer lending.
Competitive equality in banking act of 1987
Provided 10.8 billion to shore up the FSLIC.
Made provisions for regulatory forbearance in depressed areas.
Financial institutions reform, Recover and enforcement act of 1989
Provided funds to resolve S/L failures
Eliminated the FSLIC and the Federal Home Loan Bank Board.
Created the Office of Thrift Supervision to regulate thrifts
Created the Resolution Trust Corporation to resolve insolvent thrifts.
Raised Deposit insurance premiums
Reimposed restrictions on S/L activities
FDIC improvement act of 1991
Recapitalized the FDIC
Limited brokered deposits and the too big to fail policy
Set provisions for prompt corrective action
Instructed the FDIC to establish risk based premiums
Increased examinations, capital requirements, and reporting requirements
Included the Foreign Bank Supervision enhancement act which strengthened the Fed’s authority to supervise foreign banks
Rigle-Neal Interstate banking and branchin efficienty act of 1994
Overturned prohibition of interstate banking
Allowed branching across state lines
Gramm-Leach Bliley Financial services modernization act of 1999
Repealed Glass-Stegall and removed the separation of banking and securities industries
FDI reform act of 2005
merged the Bank insurance fund and the savings association insurance fund
Increased deposit insurance on individual retirement accounts to 250000
Dodd-Frank Wall street reform and consumer protection act of 2010
Creates consumer financial protection bureau to regulate mortgages and other financial products.
Routine derivatives required to be cleared through central clearing houses and exchanges.
New Government resolution authority to allow government takeovers of financial holding companies.
Creates Financial Stability Oversight council to regulate systemically important financial institutions.
Bans banks from proprietary trading and owning large percentage of hedge funds.
