1.
First Bank of the United States
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It followed the Bank of North America, the nations first de facto central bank. In 1791, The First Bank of the United States was one of the four major financial innovations proposed and supported by Hamilton, first Secretary of the Treasury. In addition to the bank, the other measures were assumption of the state war debts by the U. S. Government, establishment of a mint. The goals of Hamiltons three measures were to, Establish financial order, clarity and precedence in and of the newly formed United States, Establish credit—both in country and overseas—for the new nation. Resolve the issue of the currency, issued by the Continental Congress immediately prior to. The remaining $8 million of stock would be available to the public, there were other, nonnegotiable conditions for the establishment of the First Bank of the United States. Among these were, That the bank was to be a private company and that the bank, to avoid any appearance of impropriety, would, be forbidden to buy government bonds. Have a mandatory rotation of directors, neither issue notes nor incur debts beyond its actual capitalization. That foreigners, whether overseas or residing in the United States, would be allowed to be First Bank of the United States stockholders, but would not be allowed to vote. To achieve this, Hamilton repeated a suggestion he had nearly a year before—increase the duty on imported spirits, plus raise the excise tax on domestically distilled whiskey. Local opposition to the tax led to the Whiskey Rebellion, Hamiltons bank proposal faced widespread resistance from opponents of increased federal power. Like most of the Southern members of Congress, Jefferson and Madison also opposed a second of the three proposals of Hamilton, establishing an official government Mint. Furthermore, they contended that the creation of such a bank violated the Constitution, the Senate version of the bill did likewise, with considerably fewer, and milder, objections. It was when the two bills changed houses, complications set in, in the Senate, Hamiltons supporters objected to the Houses alteration of the plans for the excise tax. The establishment of the also raised early questions of constitutionality in the new government. Hamilton, then Secretary of the Treasury, argued that the bank was a means to utilize the authorized powers of the government implied under the law of the Constitution. Secretary of State Thomas Jefferson argued that the bank violated traditional property laws, another argument came from James Madison, who believed Congress had not received the power to incorporate a bank, or any other governmental agency. His argument rested primarily on the Tenth Amendment, that all powers not endowed to Congress are retained by the States, additionally, his belief was that if the Constitutions writers had wanted Congress to have such power, they would have made it explicit
2.
Central bank
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A central bank, reserve bank, or monetary authority is an institution that manages a states currency, money supply, and interest rates. Central banks also usually oversee the commercial banking system of their respective countries, Central banks in most developed nations are institutionally designed to be independent from political interference. Still, limited control by the executive and legislative bodies usually exists, prior to the 17th century most money was commodity money, typically gold or silver. However, promises to pay were widely circulated and accepted as value at least five hundred years earlier in both Europe and Asia. The Song dynasty was the first to issue generally circulating paper currency, in 1455, in an effort to control inflation, the succeeding Ming Dynasty ended the use of paper money and closed much of Chinese trade. The Bank of Amsterdam, established in the Dutch Republic in 1609, is considered to be the forerunner to modern central banks. The Wisselbanks innovations helped lay the foundations for the birth and development of the banking system that now plays a vital role in the worlds economy. Along with a number of local banks, it performed many functions of a central banking system. Lucien Gillard calls it the European guilder, and Adam Smith devotes many pages to explaining how the bank guilder works, the model of the Wisselbank as a state bank was adapted throughout Europe, including the Bank of Sweden and the Bank of England. Established by Dutch-Latvian Johan Palmstruch in 1668, Sveriges Riksbank is often considered by many as the worlds oldest central bank, the lenders would give the government cash and also issue notes against the government bonds, which could be lent again. A Royal Charter was granted on 27 July through the passage of the Tonnage Act 1694, the bank was given exclusive possession of the governments balances, and was the only limited-liability corporation allowed to issue banknotes. The £1. 2M was raised in 12 days, half of this was used to rebuild the Navy and these modern central banking functions evolved slowly through the 18th and 19th centuries. The currency crisis of 1797, caused by panicked depositors withdrawing from the Bank led to the government suspending convertibility of notes into specie payment. The bank was accused by the bullionists of causing the exchange rate to fall from over issuing banknotes. Nevertheless, it was clear that the Bank was being treated as an organ of the state, henry Thornton, a merchant banker and monetary theorist has been described as the father of the modern central bank. An opponent of the real bills doctrine, he was a defender of the bullionist position, thorntons process of monetary expansion anticipated the theories of Knut Wicksell regarding the cumulative process which restates the Quantity Theory in a theoretically coherent form. Until the mid-nineteenth century, commercial banks were able to issue their own banknotes, many consider the origins of the central bank to lie with the passage of the Bank Charter Act of 1844. Under this law, authorisation to issue new banknotes was restricted to the Bank of England, at the same time, the Bank of England was restricted to issue new banknotes only if they were 100% backed by gold or up to £14 million in government debt
3.
Bank of North America
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It was based upon a plan presented by US Superintendent of Finance Robert Morris on May 17,1781 that created the Nations first de facto central bank. When shares in the bank were sold to the public, the Bank of North America became the countrys first initial public offering and it was succeeded in its role as central bank by the First Bank of the United States in 1791. In May 1781 Alexander Hamilton revealed that he had recommended Morris for the position the previous summer when the constitution of the executive was being solidified, Second, he proceeded to lay out a proposal for a National Bank. Morris, who had corresponded with Hamilton previously on the subject of funding the war, immediately drafted a proposal based on Hamiltons suggestion. Morris persuaded Congress to charter the Bank of North America, the first private bank in the United States. When Robert Morris became superintendent of finance in February 1781, continental currency had ceased to be issued, on April 30,1781, Alexander Hamilton sent Morris a letter. The original charter called for the disbursement of 1,000 shares priced at $400 each, benjamin Franklin purchased one share for 0. 1% ownership as a sign of good faith to Federalists and the new bank and Hamilton made public endorsement of the establishment under his pseudonym. William Binghams first daughter, Ann Louisa Baring was born the day before the bank opened and she was also the granddaughter of Thomas Willing, a primary shareholder and the original President of the bank offices at Philadelphia. Using a gift/loan from France, Robert Morris purchased 63. 3% of the shares for the government. Robert Morris deposited large quantities of gold and silver coin and bills of exchange obtained through loans from the Netherlands and he then issued new paper currency backed by this supply. By 1783, Congress and several states including Massachusetts enacted legislation, within three years, the Bank was considered a creditworthy institution. John Nixon was the first director of the Bank of Pennsylvania, Morris subscribed £10,000 sterling to fund it. It was not a bank in the ordinary sense but an organization formed for the purpose of financing supplies for the army, in 1782, the Bank of North America superseded the Bank of Pennsylvania. Serving from 1792 to 1808, Nixon succeeded the first president of the Bank of North America, Thomas Willing, Nixon was in turn succeeded by John Morton, who served as President until 1822. William Frederick Havemeyer was its president from 1851 to 1861 and brought it successfully through the crisis of 1857, after it had become a National Bank in 1865, a president of the same name presided over its liquidation in 1908. The Bank of Pennsylvania was re-established in 1793, with a charter from the Commonwealth of Pennsylvania, and branches were opened in Pittsburgh, Harrisburg, Lancaster, Reading, and Easton. Wachovia operated a branch at the northwest corner of S. 6th and Chestnut Sts. in Philadelphia, diagonally opposite Independence Hall and this branch is the longest continuously operating branch bank in the States, operating in that location since 1781. Following Wells Fargos acquisition of Wachovia, Wells Fargo adopted Charter #1, the Bank of North America along with the First Bank of the United States and the Bank of New York were the first shares traded on the New York Stock Exchange
4.
Monetary policy of the United States
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Monetary policy concerns the actions of a central bank or other regulatory authorities that determine the size and rate of growth of the money supply. In the United States, the Federal Reserve is in charge of monetary policy, broad money includes money held in deposit balances in banks and other forms created in the financial system. Basic economics also teaches that the money supply shrinks when loans are repaid, however, other than loans, investment activities of commercial banks and the Federal Reserve also increase and decrease the money supply. Discussion of money often confuses the different measures and may lead to misguided commentary on monetary policy, monetary policy in the US is determined and implemented by the US Federal Reserve System, commonly referred to as the Federal Reserve. Established in 1913 by the Federal Reserve Act to provide central banking functions, the Board of Governors is an independent governmental agency consisting of seven officials and their support staff of over 1800 employees headquartered in Washington, D. C. The Governors are nominated by the President of the United States, the presidents of the Federal Reserve Banks are nominated by each banks respective Board of Directors, but must also be approved by the Board of Governors of the Federal Reserve. The Chairman of the Federal Reserve Board is generally considered to have the most important position, the Federal Reserve has three main mechanisms for manipulating the money supply. It can buy or sell treasury securities, selling securities has the effect of reducing the monetary base, taking that money out of circulation. Purchasing treasury securities increases the monetary base, secondly, the discount rate can be changed. And finally, the Federal Reserve can adjust the reserve requirement, which can affect the money multiplier, the requirement is adjusted only infrequently. In practice, the Federal Reserve uses open market operations to influence short-term interest rates, the federal funds rate, for which the Federal Open Market Committee announces a target on a regular basis, reflects one of the key rates for interbank lending. Open market operations change the supply of reserve balances, and the funds rate is sensitive to these operations. Assuming a closed economy, where foreign capital or trade does not affect the money supply, businesses and consumers have a lower cost of capital and can increase spending and capital improvement projects. Conversely, when the supply falls, interest rates go up, increasing the cost of capital and leading to more conservative spending. The Federal reserve increases interest rates to combat Inflation, when money is deposited in a bank, it can then be lent out to another person. If the initial deposit was $100 and the bank lends out $100 to another customer the money supply has increased by $100, however, because the depositor can ask for the money back, banks have to maintain minimum reserves to service customer needs. If the reserve requirement is 10% then, in the earlier example, the reserve requirement therefore acts as a limit on this multiplier effect. Because the reserve requirement only applies to the narrow forms of money creation
5.
Charter
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A charter is the grant of authority or rights, stating that the granter formally recognizes the prerogative of the recipient to exercise the rights specified. The word entered the English language from the Old French charte and it has come to be synonymous with the document that lays out the granting of rights or privileges. The term is used for a case to an institutional charter. A charter school, for example, is one that has different rules, regulations, charter is sometimes used as a synonym for tool or lease, as in the charter of a bus or boat or plane by an organization, intended for a similar group destination. A charter member of an organization is a member, that is. Anglo-Saxon Charters are documents from the medieval period in Britain which typically make a grant of land or record a privilege. They are usually written on parchment, in Latin but often with sections in the vernacular, describing the bounds of estates, the British Empire used three main types of colonies as it sought to expand its territory to distant parts of the earth. These three types were royal colonies, proprietary colonies, and corporate colonies, a charter colony by definition is a colony…chartered to an individual, trading company, etc. by the British crown. Although charter colonies were not the most prevalent of the three types of colonies in the British Empire, they were by no means insignificant, a congressional charter is a law passed by the United States Congress that states the mission, authority and activities of a group. Congress issued federal charters from 1791 until 1992 under Title 36 of the United States Code, a municipal corporation is the legal term for a local governing body, including cities, counties, towns, townships, charter townships, villages, and boroughs. Municipal incorporation occurs when such municipalities become self-governing entities under the laws of the state or province in which they are located, often, this event is marked by the award or declaration of a municipal charter. Charters for chivalric orders and other orders, such as the Sovereign Military Order of Malta, in project management, a project charter or project definition is a statement of the scope, objectives and participants in a project. It provides a preliminary delineation of roles and responsibilities, outlines the objectives, identifies the main stakeholders. It serves as a reference of authority for the future of the project, in medieval Europe, royal charters were used to create cities. The date that such a charter was granted is considered to be when a city was founded, at one time a royal charter was the only way in which an incorporated body could be formed, but other means are generally now used instead
6.
Credit unions in the United States
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Credit unions in the United States serve 100 million members, comprising 43. 7% of the economically active population. U. S. credit unions are not-for-profit, cooperative, tax-exempt organizations, total credit union assets in the U. S. reached $1 trillion as of March 2012. Approximately 236,056 people were employed by credit unions per data derived from the 2012 NCUA Credit Union Directory. Due to their size and limited exposure to mortgage securitizations. St. Marys Bank of Manchester, New Hampshire holds the distinction as the first credit union in the United States, as the leader of St. Maries church, Monsignor Pierre Hevey was instrumental in establishing this credit union. Attorney Joseph Boivin managed the credit union, as a volunteer, Americas Credit Union Museum now occupies the location of Boivins home, where St. Marys Bank first operated. Pierre Jay, a banker and Edward Filene, a Bostonian merchant. Filenes philanthropy, combined with the practical implementation efforts of his associate Roy Bergengren were critical to the emergence of credit unions across the United States, unlike the credit unions of Germany or Quebec, most credit unions in the US emerged from an employer-based bond of association. The Credit Union National Extension Bureau, the forerunner of the Credit Union National Association was formed as a confederation of state leagues at a meeting in Estes Park, the number of credit unions reached their peak in 1969 with 23,866 institutions and total assets of $16 billion. A museum on the history of unions, Americas Credit Union Museum, is located in Manchester. Credit unions in the United States may either be chartered by the government or a state government. The states of Delaware, South Dakota, and Wyoming do not regulate credit unions at the level, in those states. All federal credit unions and 95% of state-chartered credit unions have share insurance of at least $250,000 per member through the National Credit Union Share Insurance Fund. This deposit insurance is backed by the faith and credit of the United States government and is administered by the National Credit Union Administration. As of December 2006, the NCUSIF had an insurance fund capital ratio than the fund for the Federal Deposit Insurance Corporation. U. S. credit unions also typically have higher equity capital ratios than U. S. banks, as of the end of 2007, the National Credit Union Share Insurance Fund insured more than $560 billion in deposits at 8,101 not-for-profit cooperative US credit unions. For comparison, the FDIC insured more than $4 trillion in deposits at 8,560 banks, the NCUA and the FDIC are both independent federal agencies backed by the full faith and credit of the US government. In the United States, as elsewhere, credit unions were formed around a single church, place of work, labor union
7.
Credit card
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The card issuer creates a revolving account and grants a line of credit to the cardholder, from which the cardholder can borrow money for payment to a merchant or as a cash advance. A credit card is different from a card, where it requires the balance to be repaid in full each month. In contrast, credit cards allow the consumers a continuing balance of debt, a credit card also differs from a cash card, which can be used like currency by the owner of the card. Credit cards have a printed or embossed bank card number complying with the ISO/IEC7812 numbering standard, the card numbers prefix, called the Bank Identification Number, is the sequence of digits at the beginning of the number that determine the bank to which a credit card number belongs. This is the first six digits for MasterCard and Visa cards, the next nine digits are the individual account number, and the final digit is a validity check code. Both of these standards are maintained and further developed by ISO/IEC JTC 1/SC 17/WG1, Credit cards have a magnetic stripe conforming to the ISO/IEC7813. Many modern credit cards have a chip embedded in them as a security feature. In addition to the credit card number, credit cards also carry issue and expiration dates, as well as extra codes such as issue numbers. Not all credit cards have the sets of extra codes nor do they use the same number of digits. The concept of using a card for purchases was described in 1887 by Edward Bellamy in his utopian novel Looking Backward. Bellamy used the credit card eleven times in this novel, although this referred to a card for spending a citizens dividend from the government. Charge coins and other items were used from the late 19th century to the 1930s. They came in various shapes and sizes, with materials made out of celluloid, copper, aluminum, steel, each charge coin usually had a little hole, enabling it to be put in a key ring, like a key. These charge coins were given to customers who had charge accounts in department stores, hotels. A charge coin usually had the account number along with the merchants name. The charge coin offered a simple and fast way to copy a charge account number to the sales slip and this sped the process of copying, previously done by handwriting. It also reduced the number of errors, by having a form of numbers on the sales slip. Because the customers name was not on the coin, almost anyone could use it
8.
Transaction account
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A transaction account, checking account, current account or demand deposit account is a deposit account held at a bank or other financial institution. It is available to the account owner on demand and is available for frequent, access may be in a variety of ways, such as cash withdrawals, use of cheques and debit by electronic transfer. In economic terms, the funds held in an account are regarded as liquid funds. Transaction accounts are operated by businesses and personal users. Depending on the country and local demand economics they may not earn any or they can earn very high interest rates, in the United Kingdom, Hong Kong, India and a number of other countries, they are commonly called current or cheque accounts. Because money is available on demand they are sometimes known as a demand accounts or demand deposit accounts. In the United States, NOW accounts operate as transaction accounts, most current accounts come with a cheque book and offer the facility to arrange standing orders, direct debits and payment via a debit card. Current accounts may also allow borrowing via an overdraft facility, in Holland in the early 1500s, Amsterdam was a major trading and shipping city. People who had acquired large accumulations of cash began to deposit their money with cashiers to protect their wealth and these cashiers held the money for a fee. Competition drove cashiers to offer services, including paying out money to any person bearing a written order from a depositor to do so. They kept the note as proof of payment, in the 18th century in England, preprinted checks, serial numbers, and the word cheque appeared. By the late 18th century, the difficulty of clearing checks gave rise to the development of clearing houses, all transaction accounts offer itemized lists of all financial transactions, either through a bank statement or a passbook. Canada has an Email Money Transfer service In India, NEFT, customers may need to attend a bank branch for a wide range of banking transactions including cash withdrawals and financial advice. There may be restrictions on withdrawals, even at a branch. For example, withdrawals of cash above a threshold figure may require notice, many transactions that previously could only be performed at a branch can now be done in others ways, such as use of ATMs, online, mobile and telephone banking. Cheques were the method of making withdrawals from a transaction account. Automated teller machines enable customers of an institution to perform financial transactions without attending a branch. This enables, for example, cash to be withdrawn from an account outside normal trading hours
9.
Savings account
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A savings account is a deposit account held at a retail bank that pays interest but cannot be used directly as money in the narrow sense of a medium of exchange. These accounts let customers set aside a portion of their liquid assets while earning a monetary return, in some jurisdictions, deposits in savings accounts do not incur reserve requirements. The other major types of accounts are the transactional account, money market account. In the United States, the term savings deposit includes a deposit or an account that meets the requirements of Sec.204.2 of Regulation D. The depositor is permitted to make up to 6 pre-authorized transfers or withdrawals per month or a statement cycle of at least four weeks, there is no regulation limiting number of deposits into the account. Violations of Regulation D often involve a charge, usually $10 per transaction. A savings account linked to an account at the same financial institution can help prevent fees due to overdrafts. Savings Account Definition | Investopedia What is a Savings Account - NerdWallet
10.
Federal Deposit Insurance Corporation
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The Federal Deposit Insurance Corporation is a United States government corporation providing deposit insurance to depositors in US banks. The insurance limit was initially US$2,500 per ownership category, since the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2011, the FDIC insures deposits in member banks up to US $250,000 per ownership category. The FDIC and its reserves are not funded by public funds, the FDIC also has a US$100 billion line of credit with the United States Department of the Treasury. Only banks are insured by the FDIC, credit unions are insured up to the insurance limit by the National Credit Union Administration. As of August 27,2014, the FDIC provided deposit insurance at 6,638 institutions, the FDIC also examines and supervises certain financial institutions for safety and soundness, performs certain consumer-protection functions, and manages receiverships of failed banks. Each ownership category of a money is insured separately up to the insurance limit. For joint accounts, each co-owner is assumed to own the same fraction of the account as does each other co-owner. Thus if three people own a $750,000 account, the entire account balance is insured because each depositors $250,000 share of the account is insured. The owner of a revocable trust account is insured up to $250,000 for each unique beneficiary. Thus if there is a owner of an account that is specified as in trust for three different beneficiaries, the funds in the account are insured up to $750,000. The Board of Directors of the FDIC is the body of the FDIC. The board is composed of five members, three appointed by the president of the United States with the consent of the United States Senate, the three appointed members each serve six-year terms. No more than three members of the board may be of the political affiliation. The two ex officio members are the Comptroller of the Currency and the director of the Consumer Financial Protection Bureau. As of January 1,2016, the members of the Board of Directors of the Federal Deposit Insurance Corporation were, both of the panics renewed discussion on deposit insurance. In 1893, William Jennings Bryan presented a bill to Congress proposing a national insurance fund. No action was taken, as the legislature paid more attention to the depression at the time. After 1907, eight states established deposit insurance funds, in 1921, there were about 31,000 banks in the US
11.
National Credit Union Share Insurance Fund
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It was created in 1970 shortly after the creation of the NCUA as an independent regulator of credit unions. The NCUSIF is funded completely by participating credit unions, and no taxpayer dollars have ever used to bail out a credit union. The NCUSIF is backed by the faith and credit of the United States government. As of 31 December 2007 the fund had a balance of $7.3 billion, in 1970 Congress approved and President Richard M. Nixon signed Public Law 91-206, creating the National Credit Union Administration as an independent agency. Soon after, Congress established the National Credit Union Share Insurance Fund, the NCUSIF is funded entirely by deposits from insured credit unions. All Federal credit unions, as well as any state chartered credit union insured by the fund, are required to maintain a balance equalling 1% of all covered deposits in the fund. The NCUA is required to set a target equity balance of at least 1. 2%, the majority of the fund is invested in United States treasury securities, and a significant portion of the earnings are used to fund the operations of the NCUA. Proceeds from the fund provided 53. 3% of the NCUA operating budget in FY2007 with the coming from operating fees charged to regulated credit unions. In the event that the equity ratio of the fund falls below 1. 2%, in years when the fund achieves a ratio above 1. 3%, it will pay out excess funds to insured credit unions in the form of a dividend. Since the fund was recapitalized by credit unions in 1985, the fund has charged one premium in 1992, the fund has issued several dividends to member credit unions, the most recent in 2007. Since the passage of the Federal Deposit Insurance Reform Act of 2005 deposits were insured for up to $100,000 per insured account, the passage of the Emergency Economic Stabilization Act of 2008 increased the amount of covered shares to $250,000 until the end of 2013. This increase was made permanent by the Dodd–Frank Wall Street Reform, NCUA insurance covers member share accounts and deposits, Share draft accounts. Share savings that can be added to or withdrawn from at any time, money market share accounts, essentially high-interest share savings accounts. Share certificates, which generally require funds be kept in the account for a set period, outstanding Cashiers Checks, Interest Checks, and other negotiable instruments drawn on the accounts of the credit union. Accounts at different credit unions are insured separately, all branches of a credit union are considered to comprise a single credit union. NCUA publishes a guide entitled Your Insured Funds setting forth the general contours of NCUSIF insurance, Credit Union Failures and Insurance Fund Losses, 1971-2004. Federal Reserve Bank of San Francisco
12.
Cheque
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A cheque or check is a document that orders a bank to pay a specific amount of money from a persons account to the person in whose name the cheque has been issued. The person writing the cheque, the drawer, has a banking account where their money is held. Cheques are a type of bill of exchange and were developed as a way to make payments without the need to carry large amounts of money, both the drawer and payee may be natural persons or legal entities. Cheques are order instruments, and are not in general payable simply to the bearer as bearer instruments are, in some countries, such as the US, the payee may endorse the cheque, allowing them to specify a third party to whom it should be paid. By the second half of the 20th century, as cheque processing became automated, billions of cheques were issued annually, since then cheque usage has fallen, being partly replaced by electronic payment systems. In an increasing number of countries cheques have either become a marginal payment system or have been phased out. The spellings check, checque, and cheque were used interchangeably from the 17th century until the 20th century, in American English, the usual spelling for both is check. The cheque had its origins in the ancient banking system, in which bankers would issue orders at the request of their customers, such an order was referred to as a bill of exchange. The use of bills of exchange facilitated trade by eliminating the need for merchants to carry large quantities of currency to purchase goods, the ancient Romans are believed to have used an early form of cheque known as praescriptiones in the 1st century BC. Muslim traders are known to have used the cheque or ṣakk system since the time of Harun al-Rashid of the Abbasid Caliphate, transporting a paper saqq was more secure than transporting money. In the 9th century, a merchant in country A could cash a saqq drawn on his bank in country B. In the 13th century in Venice the bill of exchange was developed as a device to allow international trade without the need to carry large amounts of gold. Their use subsequently spread to other European countries, in the early 1500s in the Dutch Republic, to protect large accumulations of cash, people began depositing their money with cashiers. These cashiers held the money for a fee, competition drove cashiers to offer additional services including paying money to any person bearing a written order from a depositor to do so. They kept the note as proof of payment and this concept went on to spread to England and elsewhere. By the 17th century, bills of exchange were being used for payments in England. Cheques, a type of bill of exchange, then began to evolve, initially they were called drawn notes, because they enabled a customer to draw on the funds that he or she had in the account with a bank and required immediate payment. These were handwritten, and one of the earliest known still to be in existence was drawn on Messrs Morris and Clayton, scriveners and bankers based in the City of London, in 1717, the Bank of England pioneered the first use of a pre-printed form
13.
Federal Reserve System
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The Federal Reserve System is the central banking system of the United States. Over the years, events such as the Great Depression in the 1930s, the U. S. Congress established three key objectives for monetary policy in the Federal Reserve Act, maximizing employment, stabilizing prices, and moderating long-term interest rates. The first two objectives are sometimes referred to as the Federal Reserves dual mandate. S, the Fed conducts research into the economy and releases numerous publications, such as the Beige Book. S. member banks, and various advisory councils. The federal government sets the salaries of the seven governors. Nationally chartered commercial banks are required to hold stock in the Federal Reserve Bank of their region, thus, the Federal Reserve System has both private and public components to serve the interests of the public and private banks. The structure is considered unique among central banks and it is also unusual in that the United States Department of the Treasury, an entity outside of the central bank, prints the currency used. The U. S. Government receives all the annual profits, after a statutory dividend of 6% on member banks capital investment is paid. In 2015, the Federal Reserve made a profit of $100.2 billion, the primary motivation for creating the Federal Reserve System was to address banking panics. Before the founding of the Federal Reserve System, the United States underwent several financial crises, a particularly severe crisis in 1907 led Congress to enact the Federal Reserve Act in 1913. Today the Federal Reserve System has responsibilities in addition to ensuring the stability of the financial system. S. S and this practice is called fractional-reserve banking. As a result, banks usually invest the majority of the funds received from depositors, on rare occasions, too many of the banks customers will withdraw their savings and the bank will need help from another institution to continue operating, this is called a bank run. Bank runs can lead to a multitude of social and economic problems, the Federal Reserve System was designed as an attempt to prevent or minimize the occurrence of bank runs, and possibly act as a lender of last resort when a bank run does occur. Many economists, following Milton Friedman, believe that the Federal Reserve inappropriately refused to lend money to banks during the bank runs of 1929. Because some banks refused to clear checks from certain others during times of economic uncertainty, to address these problems, Congress gave the Federal Reserve System the authority to establish a nationwide check-clearing system. It took over this role from the private sector clearing houses which operated during the Free Banking Era, whether public or private, through its discount window and credit operations, Reserve Banks provide liquidity to banks to meet short-term needs stemming from seasonal fluctuations in deposits or unexpected withdrawals. Longer term liquidity may also be provided in exceptional circumstances, the rate the Fed charges banks for these loans is called the discount rate. By making these loans, the Fed serves as a buffer against unexpected day-to-day fluctuations in reserve demand and this contributes to the effective functioning of the banking system, alleviates pressure in the reserves market and reduces the extent of unexpected movements in the interest rates. For example, on September 16,2008, the Federal Reserve Board authorized an $85 billion loan to stave off the bankruptcy of international insurance giant American International Group
14.
ATM card
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ATM cards are known by a variety of names such as bank card, MAC, client card, key card or cash card, among others. Most payment cards, such as debit and credit cards can also function as ATM cards, charge and proprietary cards cannot be used as ATM cards. The use of a card to withdraw cash at an ATM is treated differently to a POS transaction. Interbank networks allow the use of ATM cards at ATMs of private operators, ATM cards can also be used on improvised ATMs such as mini ATMs, merchants card terminals that deliver ATM features without any cash drawer. These terminals can also be used as cashless scrip ATMs by cashing the receipts they issue at the point of sale. The first ATM cards were issued in 1967 by Barclays in London and they also have an embossed bank card number conforming with the ISO/IEC7812 numbering standard. All ATM machines, at a minimum, will permit cash withdrawals of customers of the machines owner and they will report the amount of the withdrawal and any fees charged by the machine on the receipt. Some may provide services, such as selling postage stamps. Banks have long argued with merchants over the fees that can be charged by the bank for such transactions, despite the fact that ATM cards require a PIN for use, banks have decided to permit the use of a non-PIN based card for all merchant transactions. For other types of transactions through telephone or online banking, this may be performed with an ATM card without in-person authentication, the SEPA for Cards has completely removed the magnetic stripe requirement from the former Maestro debit cards. Payment card Credit card Debit card
15.
Debit card
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A debit card is a plastic payment card that can be used instead of cash when making purchases. It is similar to a card, but unlike a credit card. Some cards may bear a stored value with which a payment is made, in some cases, the primary account number is assigned exclusively for use on the Internet and there is no physical card. In many countries, the use of cards has become so widespread that their volume has overtaken or entirely replaced cheques and, in some instances. The development of debit cards, unlike credit cards and charge cards, has generally been country specific resulting in a number of different systems around the world, which were often incompatible. Since the mid-2000s, a number of initiatives have allowed debit cards issued in one country to be used in countries and allowed their use for internet. Unlike credit and charge cards, payments using a card are immediately transferred from the cardholders designated bank account. Debit cards usually also allow for instant withdrawal of cash, acting as the ATM card for withdrawing cash, merchants may also offer cashback facilities to customers, where a customer can withdraw cash along with their purchase. There are currently three ways that debit card transactions are processed, EFTPOS, offline debit and the Electronic Purse Card System, One physical card can include the functions of all three types, so that it can be used in a number of different circumstances. Some debit cards are branded with the logo of the national card as well as Maestro. The use of a card system allows operators to package their product more effectively while monitoring customer spending. Online debit cards require electronic authorization of every transaction and the debits are reflected in the user’s account immediately, some on-line debit systems are using the normal authentication processes of Internet banking to provide real-time on-line debit transactions. Offline debit cards have the logos of major credit cards or major debit cards and are used at the point of sale like a credit card. This type of debit card may be subject to a daily limit, transactions conducted with offline debit cards require 2–3 days to be reflected on users’ account balances. Smart-card-based electronic purse systems are in use throughout Europe since the mid-1990s, most notably in Germany, Austria, in Austria and Germany, almost all current bank cards now include electronic purses, whereas the electronic purse has been recently phased out in the Netherlands. Those prepaid debit cards that can be reloaded are also called reloadable debit cards, the primary market for prepaid debit cards has traditionally been unbanked people, that is, people who do not use banks or credit unions for their financial transactions. But prepaid cards also appeal to other users attracted by their advantages, and if a user has doubts about online security, using a prepaid debit card for online purchases protects their normal credit card from risk. If the card provider offers a website for letting you check the cards balance
16.
History of the United States
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The date of the start of the history of the United States is a subject of debate among historians. In recent decades American schools and universities typically have shifted back in time to more on the colonial period. Indigenous people lived in what is now the United States for thousands of years before European colonists began to arrive, mostly from England, the Spanish built small settlements in Florida and the Southwest, and the French along the Mississippi River and the Gulf Coast. By the 1770s, thirteen British colonies contained two and a million people along the Atlantic coast east of the Appalachian Mountains. After the end of the French and Indian Wars in the 1760s, Tax resistance, especially the Boston Tea Party, led to punitive laws by Parliament designed to end self-government in Massachusetts. American Patriots adhered to an ideology called republicanism that emphasized civic duty, virtue. Armed conflict began in 1775 as Patriots drove the royal officials out of every colony and assembled in mass meetings, in 1776, the Second Continental Congress declared that there was a new, independent nation, the United States of America, not just a collection of disparate colonies. With large-scale military and financial support from France and the leadership of General George Washington. The peace treaty of 1783 gave the new nation the land east of the Mississippi River, the central government established by the Articles of Confederation proved ineffectual at providing stability, as it had no authority to collect taxes and had no executive officer. Congress called a convention to meet secretly in Philadelphia in 1787 and it wrote a new Constitution, which was adopted in 1789. In 1791, a Bill of Rights was added to guarantee inalienable rights, with Washington as the first president and Alexander Hamilton his chief political and financial adviser, a strong central government was created. When Thomas Jefferson became president he purchased the Louisiana Territory from France, a second and final war with Britain was fought in 1812. Encouraged by the notion of Manifest Destiny, federal territory expanded all the way to the Pacific, the U. S. always was large in terms of area, but its population was small, only 4 million in 1790. Population growth was rapid, reaching 7.2 million in 1810,32 million in 1860,76 million in 1900,132 million in 1940, Economic growth in terms of overall GDP was even faster. However, compared to European powers, the military strength was relatively limited in peacetime before 1940. The expansion was driven by a quest for land for yeoman farmers. The expansion of slavery was increasingly controversial and fueled political and constitutional battles, the 1860 presidential election of Republican Abraham Lincoln was on a platform of ending the expansion of slavery and putting it on a path to extinction. Seven cotton-based deep South slave states seceded and later founded the Confederacy months before Lincolns inauguration, No nation ever recognized the Confederacy, but it opened the war by attacking Fort Sumter in 1861
17.
New York City
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The City of New York, often called New York City or simply New York, is the most populous city in the United States. With an estimated 2015 population of 8,550,405 distributed over an area of about 302.6 square miles. Located at the tip of the state of New York. Home to the headquarters of the United Nations, New York is an important center for international diplomacy and has described as the cultural and financial capital of the world. Situated on one of the worlds largest natural harbors, New York City consists of five boroughs, the five boroughs – Brooklyn, Queens, Manhattan, The Bronx, and Staten Island – were consolidated into a single city in 1898. In 2013, the MSA produced a gross metropolitan product of nearly US$1.39 trillion, in 2012, the CSA generated a GMP of over US$1.55 trillion. NYCs MSA and CSA GDP are higher than all but 11 and 12 countries, New York City traces its origin to its 1624 founding in Lower Manhattan as a trading post by colonists of the Dutch Republic and was named New Amsterdam in 1626. The city and its surroundings came under English control in 1664 and were renamed New York after King Charles II of England granted the lands to his brother, New York served as the capital of the United States from 1785 until 1790. It has been the countrys largest city since 1790, the Statue of Liberty greeted millions of immigrants as they came to the Americas by ship in the late 19th and early 20th centuries and is a symbol of the United States and its democracy. In the 21st century, New York has emerged as a node of creativity and entrepreneurship, social tolerance. Several sources have ranked New York the most photographed city in the world, the names of many of the citys bridges, tapered skyscrapers, and parks are known around the world. Manhattans real estate market is among the most expensive in the world, Manhattans Chinatown incorporates the highest concentration of Chinese people in the Western Hemisphere, with multiple signature Chinatowns developing across the city. Providing continuous 24/7 service, the New York City Subway is one of the most extensive metro systems worldwide, with 472 stations in operation. Over 120 colleges and universities are located in New York City, including Columbia University, New York University, and Rockefeller University, during the Wisconsinan glaciation, the New York City region was situated at the edge of a large ice sheet over 1,000 feet in depth. The ice sheet scraped away large amounts of soil, leaving the bedrock that serves as the foundation for much of New York City today. Later on, movement of the ice sheet would contribute to the separation of what are now Long Island and Staten Island. The first documented visit by a European was in 1524 by Giovanni da Verrazzano, a Florentine explorer in the service of the French crown and he claimed the area for France and named it Nouvelle Angoulême. Heavy ice kept him from further exploration, and he returned to Spain in August and he proceeded to sail up what the Dutch would name the North River, named first by Hudson as the Mauritius after Maurice, Prince of Orange
18.
Wall Street
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Wall Street is an eight-block-long street running roughly northwest to southeast from Broadway to South Street, at the East River, in the Financial District of Lower Manhattan in New York City. Over time, the term has become a metonym for the markets of the United States as a whole. Several other major exchanges have or had headquarters in the Wall Street area, including the New York Mercantile Exchange, the New York Board of Trade, there are varying accounts about how the Dutch-named de Walstraat got its name. A conflicting explanation is that Wall Street was named after Walloons— the Dutch name for a Walloon is Waal, among the first settlers that embarked on the ship Nieu Nederlandt in 1624 were 30 Walloon families. The Dutch word wal can be translated as rampart, however, even some English maps show the name as Waal Straat, and not as Wal Straat. But soon after that, the Dutch governor, Kieft, sent his men out there one night, few of them escaped, but they spread the story of what had been done, and this did much to antagonize all the remaining tribes against all the white settlers. Shortly after, Nieuw Amsterdam erected a palisade for defense against its now enraged red neighbors. The space between the walls is now called Wall Street, and its spirit is still that of a bulwark against the people. In the 1640s basic picket and plank fences denoted plots and residences in the colony, in 1685, surveyors laid out Wall Street along the lines of the original stockade. In these early days, local merchants and traders would gather at disparate spots to buy and sell shares and bonds, Wall Street was also the marketplace where owners could hire out their slaves by the day or week. The rampart was removed in 1699, the slave market operated from 1711 to 1762 at the corner of Wall and Pearl Streets. It was a structure with a roof and open sides, although walls may have been added over the years. The city directly benefited from the sale of slaves by implementing taxes on every person who was bought, in the late 18th century there was a buttonwood tree at the foot of Wall Street under which traders and speculators would gather to trade securities. The benefit was being in proximity to each other, in 1792, traders formalized their association with the Buttonwood Agreement which was the origin of the New York Stock Exchange. The idea of the agreement was to make the more structured and without the manipulative auctions. Persons signing the agreement agreed to each other a standard commission rate, persons not signing could still participate. In 1789 Wall Street was the scene of the United States first presidential inauguration when George Washington took the oath of office on the balcony of Federal Hall on April 30,1789 and this was also the location of the passing of the Bill Of Rights. Alexander Hamilton, who was the first Treasury secretary and architect of the early United States financial system, is buried in the cemetery of Trinity Church, in the first few decades, both residences and businesses occupied the area, but increasingly business predominated
19.
Asset management
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Asset management, broadly defined, refers to any system that monitors and maintains things of value to an entity or group. It may apply to both tangible assets such as buildings and to intangible assets such as capital, intellectual property. Asset management is a process of deploying, operating, maintaining, upgrading. The term is most commonly used in the world to describe people. These include, for example, investment managers that manage the assets of a pension fund, the most common usage of the term asset manager refers to investment management, the sector of the financial services industry that manages investment funds and segregated client accounts. An asset management is a part of a company which comprises experts who manage money. Operating and sustainment of assets in a constrained budget environment require a prioritization scheme, as a way of illustration, the recent development of renewable energy has seen the rise of effective asset managers involved in the management of solar systems. These teams are more and more teaming-up with financial asset managers in order to offer turn key solutions to investors. Software asset management is one kind of asset management. It is related to asset health management, infrastructure asset management expands on this theme in relation primarily to public sector, utilities, property and transport systems. An example in which public asset management is used is land-use development, an EAM requires an asset registry combined with a computerized maintenance management system. All public assets are interconnected and share proximity, possible through the use of information systems. A GIS platform combined with information of both the hard and soft assets helps to remove the traditional silos of structured municipal functions, the GIS platform is only an assisting tool, asset managers need to make informed decisions about their assets in order to fulfill their organizational goals. List of asset management firms P2P Asset Management Robo-advisor Baird, G, defining Public Asset Management for Municipal Water Utilities. Journal American Water Works Association May 2011,103,5,30, www. awwa. org
20.
American Revolutionary War
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From about 1765 the American Revolution had led to increasing philosophical and political differences between Great Britain and its American colonies. The war represented a culmination of these differences in armed conflict between Patriots and the authority which they increasingly resisted. This resistance became particularly widespread in the New England Colonies, especially in the Province of Massachusetts Bay. On December 16,1773, Massachusetts members of the Patriot group Sons of Liberty destroyed a shipment of tea in Boston Harbor in an event that became known as the Boston Tea Party. Named the Coercive Acts by Parliament, these became known as the Intolerable Acts in America. The Massachusetts colonists responded with the Suffolk Resolves, establishing a government that removed control of the province from the Crown outside of Boston. Twelve colonies formed a Continental Congress to coordinate their resistance, and established committees, British attempts to seize the munitions of Massachusetts colonists in April 1775 led to the first open combat between Crown forces and Massachusetts militia, the Battles of Lexington and Concord. Militia forces proceeded to besiege the British forces in Boston, forcing them to evacuate the city in March 1776, the Continental Congress appointed George Washington to take command of the militia. Concurrent to the Boston campaign, an American attempt to invade Quebec, on July 2,1776, the Continental Congress formally voted for independence, issuing its Declaration on July 4. Sir William Howe began a British counterattack, focussing on recapturing New York City, Howe outmaneuvered and defeated Washington, leaving American confidence at a low ebb. Washington captured a Hessian force at Trenton and drove the British out of New Jersey, in 1777 the British sent a new army under John Burgoyne to move south from Canada and to isolate the New England colonies. However, instead of assisting Burgoyne, Howe took his army on a campaign against the revolutionary capital of Philadelphia. Burgoyne outran his supplies, was surrounded and surrendered at Saratoga in October 1777, the British defeat in the Saratoga Campaign had drastic consequences. Giving up on the North, the British decided to salvage their former colonies in the South, British forces under Lieutenant-General Charles Cornwallis seized Georgia and South Carolina, capturing an American army at Charleston, South Carolina. British strategy depended upon an uprising of large numbers of armed Loyalists, in 1779 Spain joined the war as an ally of France under the Pacte de Famille, intending to capture Gibraltar and British colonies in the Caribbean. Britain declared war on the Dutch Republic in December 1780, in 1781, after the British and their allies had suffered two decisive defeats at Kings Mountain and Cowpens, Cornwallis retreated to Virginia, intending on evacuation. A decisive French naval victory in September deprived the British of an escape route, a joint Franco-American army led by Count Rochambeau and Washington, laid siege to the British forces at Yorktown. With no sign of relief and the situation untenable, Cornwallis surrendered in October 1781, Whigs in Britain had long opposed the pro-war Tory majority in Parliament, but the defeat at Yorktown gave the Whigs the upper hand
21.
Thirteen Colonies
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The Thirteen Colonies were a group of British colonies on the east coast of North America founded in the 17th and 18th centuries that declared independence in 1776 and formed the United States. The Thirteen Colonies had very similar political, constitutional, and legal systems and they were part of Britains possessions in the New World, which also included colonies in present-day Canada and the Caribbean, as well as East and West Florida. However, the Thirteen Colonies had a degree of self-government and active local elections. In the 1750s, the colonies began collaborating with each other instead of dealing directly with Britain, Colonial decisions were subject to approval by the governor and the home government. There were also substantial populations of African slaves in some of the colonies, especially Virginia, the Carolinas, the names of the colonies were chosen by the founders and proprietors, subject to royal approval, and given in the founding charters. Nine of the thirteen chose to include in their names the term Province of, later residents tended to drop the ambiguous terminology, as in the map shown in the article Province of New Jersey, which is labeled simply East Jersey and West Jersey. In July 1776, they formed a new nation called the United States of America, the new nation achieved that goal by winning the American Revolutionary War with the aid of France, the Netherlands, and Spain. The American flag features thirteen horizontal stripes which represent these original thirteen colonies, besides these thirteen colonies, Britain had another dozen in the New World. Those in the British West Indies, Newfoundland, the Province of Quebec, Nova Scotia, Prince Edward Island, Bermuda, and East and West Florida remained loyal to the crown throughout the war. The British crown had recently acquired those lands, and many of the issues facing the Thirteen Colonies did not apply to them, especially in the case of Quebec. Contemporary documents usually list the thirteen colonies of British North America in geographical order, the consolidation collapsed after the Glorious Revolution of 1688–89, and the nine former colonies re-established their separate identities in 1689. Massachusetts Bay Colony Settled in 1630 by Puritans from England, the colonial charter was revoked in 1684, and a new charter was issued in 1691 establishing an enlarged Province of Massachusetts Bay. Province of Maine Settled in 1622, the Massachusetts Bay Colony claimed the Maine territory in the 1650s, then limited to present-day southernmost Maine. Parts of Maine east of the Kennebec River were also part of New York in the half of the 17th century. These areas were made part of the Province of Massachusetts Bay in the charter of 1691. Plymouth Colony Settled in 1620 by the Pilgrims, plymouth was merged into the Province of Massachusetts Bay in the charter of 1691. Saybrook Colony Founded in 1635 and merged with Connecticut Colony in 1644, New Haven Colony Settled in late 1637. New Netherland Extensive region centered about New Amsterdam at the tip of Manhattan Island
22.
JPMorgan Chase
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JPMorgan Chase & Co. is a U. S. multinational banking and financial services holding company headquartered in New York City. It is the largest bank in the United States, the third largest bank by total assets, with total assets of roughly US$2.5 trillion. It is a provider of financial services, and according to Forbes magazine is the worlds sixth largest public company based upon a composite ranking. The hedge fund unit of JPMorgan Chase is the second largest hedge fund in the United States, the company was formed in 2000, when Chase Manhattan Corporation merged with J. P. Morgan & Co. The J. P. Morgan brand, historically known as Morgan, is used by the investment banking, asset management, private banking, private wealth management, and treasury & securities services divisions. Fiduciary activity within private banking and private wealth management is done under the aegis of JPMorgan Chase Bank, the Chase brand is used for credit card services in the United States and Canada, the banks retail banking activities in the United States, and commercial banking. The corporate headquarters is located at 270 Park Avenue in Midtown Manhattan, the retail and commercial bank is headquartered in 270 Park Avenue, Midtown Manhattan, New York City, New York, U. S. JPMorgan Chase & Co. is considered to be a universal bank. As of 2016, JPMorgan Chase is one of the Big Four banks of the United States, followed by Bank of America, Citigroup, and Wells Fargo. JPMorgan Chase, in its current structure, is the result of the combination of several large U. S. banking companies since 1996, including Chase Manhattan Bank, Bank One, Bear Stearns and Washington Mutual. The Chase Manhattan Bank was formed upon the 1955 purchase of Chase National Bank by the Bank of the Manhattan Company, the Bank of the Manhattan Company was the creation of Aaron Burr, who transformed The Manhattan Company from a water carrier into a bank. This of course injected a powerful element of politics into the process and invited what today would be called corruption, the innocuous-looking clause allowed the company to invest surplus capital in any lawful enterprise. Within six months of the creation, and long before it had laid a single section of water pipe, the company opened a bank. Still in existence, it is today J. P. Morgan Chase, weakened by the real estate collapse in the early 1990s, it was acquired by Chemical Bank in 1996, retaining the Chase name. Before its merger with J. P. Morgan & Co. the new Chase expanded the investment, in 1999, it acquired San Francisco-based Hambrecht & Quist for $1.35 billion. In April 2000, UK-based Robert Fleming & Co. was purchased by the new Chase Manhattan Bank for $7.7 billion, the New York Chemical Manufacturing Company was founded in 1823 as a maker of various chemicals. In 1824, the company amended its charter to perform banking activities, in the 1980s and early 1990s, Chemical emerged as one of the leaders in the financing of leveraged buyout transactions. In 1984, Chemical launched Chemical Venture Partners to invest in equity transactions alongside various financial sponsors. At many points throughout history, Chemical Bank was the largest bank in the United States
23.
Bank of America
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Bank of America is a multinational banking and financial services corporation headquartered in Charlotte, North Carolina. It is ranked 2nd on the list of largest banks in the United States by assets, as of 2016, Bank of America was the 26th largest company in the United States by total revenue. In 2016, it was ranked #11 on the Forbes Magazine Global 2000 list of largest companies in the world and its acquisition of Merrill Lynch in 2008 made it the worlds largest wealth management corporation and a major player in the investment banking market. As of December 31,2016, it had US$886.148 billion in assets under management, as of December 31,2016, the company held 10. 73% of all bank deposits in the United States. It is one of the Big Four banks in the United States, along with Citigroup, JPMorgan Chase, Bank of America operates—but does not necessarily maintain retail branches—in all 50 states of the United States, the District of Columbia and more than 40 other countries. It has a retail banking footprint that serves approximately 46 million consumer, Bank of America provides its products and services through 4,600 retail financial centers, approximately 15,900 automated teller machines, call centers, and online and mobile banking platforms. The history of Bank of America dates back to October 17,1904, Giannini was raised by his mother and stepfather Lorenzo Scatena, as his father was fatally shot over a pay dispute with an employee. When the 1906 San Francisco earthquake struck, Giannini was able to all deposits out of the bank building. Because San Franciscos banks were in smoldering ruins and unable to open their vaults, from a makeshift desk consisting of a few planks over two barrels, he lent money to those who wished to rebuild. In 1922, Giannini established Bank of America and Italy, in 1918 another corporation, Bancitaly Corporation, was organized by A. P. Giannini, the largest stockholder of which was Stockholders Auxiliary Corporation. Monnette and consolidated it with other holdings to create what would become the largest banking institution in the country. Bank of Italy was renamed on November 3,1930 to Bank of America National Trust and Savings Association, Giannini and Monnette headed the resulting company, serving as co-chairs. Branch banking was introduced by Giannini shortly after 1909 legislation in California that allowed for branch banking in the state and its first branch outside San Francisco was established in 1909 in San Jose. By 1929, the bank had 453 banking offices in California with aggregate resources of over US$1.4 billion. There is a replica of the 1909 Bank of Italy branch bank in History Park in San Jose, and the 1925 Bank of Italy Building is an important downtown landmark. Giannini sought to build a bank, expanding into most of the western states as well as into the insurance industry, under the aegis of his holding company. In 1953, regulators succeeded in forcing the separation of Transamerica Corporation, the passage of the Bank Holding Company Act of 1956 prohibited banks from owning non-banking subsidiaries such as insurance companies. Bank of America and Transamerica were separated, with the company continuing in the insurance business
24.
Wells Fargo
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Wells Fargo & Company is an American international banking and financial services holding company headquartered in San Francisco, California, with hubquarters throughout the country. It is the worlds second-largest bank by market capitalization and the third largest bank in the U. S. by assets, Wells Fargo surpassed Citigroup Inc. to become the third-largest U. S. bank by assets at the end of 2015. Wells Fargo is the second-largest bank in deposits, home mortgage servicing, the firms primary U. S. operating subsidiary is national bank Wells Fargo Bank, N. A. which designates its main office as Sioux Falls, South Dakota. In 2016, Wells Fargo ranked 7th on the Forbes Magazine Global 2000 list of largest public companies in the world, in 2015, the company was ranked the 22nd most admired company in the world, and the 7th most respected company in the world. As of October 2015, the company had a rating of AA−. However, for a period in 2007, the company was the only AAA-rated bank. Along with JPMorgan Chase, Bank of America, and Citigroup, as of December 31,2015, it had 8,700 retail branches and 13,000 automated teller machines. The company operates across 35 countries and has over 70 million customers globally, in February 2014, Wells Fargo was named the worlds most valuable bank brand for the second year running in The Banker and Brand Finance study of the top 500 banking brands. In December 2016, following the scandal, the company amended its by-laws to separate the roles of chairman, in January 2017, it emerged that Wells Fargo had kept its talks with the U. S. Consumer Financial Protection Bureau about the fake account investigation silent from shareholders for up to six months beginning as early as March 2016. A regulatory filing by Wells Fargo revealed in November 2016 that it was under investigation by the U. S. Securities and Exchange Commission in relation to its accounts sales practices. Also in November 2016, three U. S. senators alleged that Wells Fargos sales scandal had extended from retail bankers to its employees. Wells Fargo delineates three different business segments when reporting results, Community Banking, Wholesale Banking, and Wealth, Brokerage, the Community Banking segment includes Regional Banking, Diversified Products, and the Consumer Deposits groups, as well as Wells Fargo Customer Connection. Wells Fargo also has around 2,000 stand-alone mortgage branches throughout the country, in March 2017, Wells Fargo announced a plan to offer smartphone-based transactions with mobile wallets including Wells Fargo Wallet, Android Pay and Samsung Pay. Wells Fargo Home Mortgage is the largest retail mortgage lender in the United States, as of Q32011, originating one out of every four home loans. Wells Fargo services $1.8 trillion in home mortgages, the 2nd largest servicing portfolio in the U. S. Now, in 2013 its share is closer to 22%, of which eight percentage points is aggregation. Wells Fargo private student loans are available to students to pay for college expenses, such as, tuition, books, computers. Loans are available for undergraduate, career and community colleges, graduate school, law school, Wells Fargo also provides private student loan consolidation and student loans for parents
25.
Citigroup
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Citigroup Inc. or Citi is an American multinational investment banking and financial services corporation headquartered in Manhattan, New York City. The company was formed by the merger of banking giant Citicorp, Citigroup ranks 3rd on the list of largest banks in the United States by assets and is one of the Big Four banks in the United States, alongside JPMorgan Chase, Bank of America, and Wells Fargo. In addition to U. S. money managers, its largest shareholders include Abu Dhabi, Prince Al-Waleed bin Talal, the company is one of 24 primary dealers in United States Treasury securities. Citigroup has over 200 million customer accounts and does business in more than 160 countries, Citigroup has 219,000 employees, although it had 357,000 employees at its height before the financial crisis of 2007-2008. Citigroup suffered huge losses during the crisis of 2007-2008 and was rescued in November 2008 in a massive stimulus package by the U. S. government. Citigroup was formed on October 9,1998, following the $140 billion merger of Citicorp and Travelers Group to create the worlds largest financial services organization. As such, the history dates back to the founding of. City Bank of New York was chartered by New York State on June 16,1812, serving a group of New York merchants, the bank opened for business on September 14 of that year, and Samuel Osgood was elected as the first President of the company. The companys name was changed to The National City Bank of New York in 1865 after it joined the new U. S. national banking system, and it became the largest American bank by 1895. The bank changed its name to The First National City Bank of New York in 1955, the bank introduced its First National City Charge Service credit card—popularly known as the Everything card and later to become MasterCard—in 1967. In 1976, under the leadership of CEO Walter B, wriston, First National City Bank was renamed as Citibank, N. A. Shortly afterward, the bank launched the Citicard, which pioneered the use of 24-hour ATMs, john S. Reed was elected CEO in 1984, and Citi became a founding member of the CHAPS clearing house in London. Travelers Group, at the time of merger, was a group of financial concerns that had been brought together under CEO Sandy Weill. Its roots came from Commercial Credit, a subsidiary of Control Data Corporation that was taken private by Weill in November 1986 after taking charge of the company earlier that year. Two years later, Weill mastered the buyout of Primerica—a conglomerate that had bought life insurer A L Williams as well as stock broker Smith Barney. The new company took the Primerica name, and employed a cross-selling strategy such that each of the entities within the parent company aimed to sell each others services and its non-financial businesses were spun off. With the acquisition, the group became Travelers Inc, Property & casualty and life & annuities underwriting capabilities were added to the business. Meanwhile, the distinctive Travelers red umbrella logo, which was acquired in the deal, was applied to all the businesses within the newly named organization
26.
Goldman Sachs
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Goldman Sachs was founded in 1869 and is headquartered at 200 West Street in Lower Manhattan, New York City, with additional offices in other international financial centers. The firm provides asset management, mergers and acquisitions advice, prime brokerage, and securities underwriting to its clients, which include corporations, governments, and individuals. The firm also engages in making and private equity deals. The loan was made in November 2008 and repaid with interest in June 2009, the list of former employees of Goldman Sachs who moved on to government positions includes former U. S. In addition, former Goldman employees have headed the New York Stock Exchange, the World Bank, Goldman Sachs was founded in New York in 1869 by Marcus Goldman. In 1882, Goldmans son-in-law Samuel Sachs joined the firm, in 1885, Goldman took his son Henry and his son-in-law Ludwig Dreyfuss into the business and the firm adopted its present name, Goldman Sachs & Co. The company made a name for itself pioneering the use of paper for entrepreneurs. By 1898, the firms capital stood at $1.6 million, Goldman entered the initial public offering market in 1906 when it took Sears, Roebuck and Company public. The deal occurred due to Henry Goldmans personal friendship with the owner of Sears, other IPOs followed, including F. W. Woolworth and Continental Can. In 1912, Henry S. Bowers became the first non-family member, in 1917, under growing pressure from the other partners in the firm due to his pro-German stance, Henry Goldman resigned. Control of the firm was now in the hands of the Sachs family, waddill Catchings joined the company in 1918. In 1920, the firm moved from 60 Wall Street to $1.5 million 12-story premises on 30–32 Pine Street, by 1928, Catchings was the Goldman partner with the single largest stake in the firm. On December 4,1928, the firm launched the Goldman Sachs Trading Corp. a closed-end fund, the fund failed during the Stock Market Crash of 1929, amid accusations that Goldman had engaged in share price manipulation and insider trading. In 1930, the firm ousted Catchings, and Sidney Weinberg assumed the role of partner and shifted Goldmans focus away from trading. It was Weinbergs actions that helped to some of Goldmans tarnished reputation. On the back of Weinberg, Goldman was lead advisor on the Ford Motor Companys IPO in 1956, under Weinbergs reign the firm also started an investment research division and a municipal bond department. It also was at time that the firm became an early innovator in risk arbitrage. For most of the 1950s and 1960s, this would be Weinberg, Levy was a pioneer in block trading and the firm established this trend under his guidance
27.
Economy of the United States
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The United States GDP was estimated to be $17.914 trillion as of Q22015. Several countries use it as their currency, and in many others it is the de facto currency. The United States has an economy and has maintained a stable overall GDP growth rate, a moderate unemployment rate. Its seven largest trading partners are Canada, China, Mexico, Japan, Germany, South Korea, the US has abundant natural resources, a well-developed infrastructure, and high productivity. It has the worlds ninth-highest per capita GDP and tenth-highest per capita GDP as of 2013, Americans have the highest average household and employee income among OECD nations, and in 2010 had the fourth highest median household income, down from second highest in 2007. It has been the worlds largest national economy since at least the 1890s, the U. S. is the worlds third largest producer of oil and natural gas. It is one of the largest trading nations in the world as well as the second largest manufacturer. The US not only has the largest internal market for goods, US total trade amounted to $4. 93T in 2012. Of the worlds 500 largest companies,128 are headquartered in the US, the United States has one of the worlds largest and most influential financial markets. The New York Stock Exchange is by far the worlds largest stock exchange by market capitalization, foreign investments made in the US total almost $2.4 trillion, while American investments in foreign countries total over $3.3 trillion. The economy of the U. S. leads in international ranking on venture capital and Global Research, consumer spending comprises 71% of the US economy in 2013. The United States has the largest consumer market in the world, the labor market has attracted immigrants from all over the world and its net migration rate is among the highest in the world. The U. S. is one of the economies in studies such as the Ease of Doing Business Index, the Global Competitiveness Report. The US economy went through a downturn following the financial crisis of 2007–08. The economy, however, began to recover in the half of 2009. In December 2014, public debt was more than 100% of GDP. Domestic financial assets totaled $131 trillion and domestic financial liabilities totaled $106 trillion, the economic history of the United States began with American settlements in the 17th and 18th centuries. The American colonies went from marginally successful colonial economies to a small, independent farming economy, in 180 years, the US grew to a huge, integrated, industrialized economy that made up around one fifth of the world economy
28.
History of banking in the United States
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This article details the history of banking in the United States. Banking in the United States is regulated by both the federal and state governments, in the first half of the 19th century, many of the smaller commercial banks within New England were easily chartered as laws allowed to do so. The rise of commercial banking saw an increase in opportunities for entrepreneurs to borrow capital used to grow an enterprise, the small private banking sector saw a great deal of insider lending. Many of these banks actually spurred early investment and helped spur many later projects, the Bank of North America was granted a monopoly on the issue of bills of credit as currency at the national level. He has accordingly been called the father of the system of credit, after the war, a number of state banks were chartered, including in 1784, the Bank of New York and the Bank of Massachusetts. The values of currencies were approximated and fluctuations in exchange rates were published. While values of various currencies did fluctuate geographically, this was irrelevant in a society dominated by local trades, opponents of the bank argued that government monopolization of money was a corrupt exercise that would impoverish the people. In 1791, Congress chartered the First Bank of the United States, consequently, when First Bank of the United States’ charter came up for renewal in 1811, it was met with a great deal of opposition from state banks and the renewal legislation was not passed. The Second Bank of the United States opened in January 1817, the predominant reason that the Second Bank of the United States was chartered was that in the War of 1812, the U. S. experienced severe inflation and had difficulty in financing military operations. Subsequently, the credit and borrowing status of the Treasury was at its lowest level ever, the charter of the Second Bank of the United States was for 20 years and therefore up for renewal in 1836. Partisan politics came heavily into play in the debate over the renewal of the charter, the classic statement by Arthur Schlesinger was that the partisan politics during the Jacksonian period was grounded in class conflict. Viewed through the lens of party elite discourse, Schlesinger saw inter-party conflict as a clash between wealthy Whigs and working class Democrats. President Andrew Jackson strongly opposed the renewal of its charter, jacksons political target was Nicholas Biddle, financier, politician, and president of the Bank of the United States. During September 1833, President Jackson issued an order that ended the deposit of government funds into the Bank of the United States. After September 1833, these deposits were placed in the chartered banks. It is probably a misnomer to label all the state chartered repositories “pet banks”, the following year, New York enacted similar legislation with the Free Banking Act, and other states soon followed. These banks could issue notes against specie and the states regulated the reserve requirements, interest rates for loans and deposits. Free banking spread rapidly to other states, and from 1840 to 1863 all banking business was done by state-chartered institutions, while the banking systems of several states were initially unstable, over time financial indicators in most states stabilized
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United States Secretary of the Treasury
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This position in the Federal Government of the United States is analogous to the Minister of Finance in many other countries. The Secretary of the Treasury is a member of the Presidents Cabinet, nominees for The Secretary of the Treasury undergo a confirmation hearing before the United States Senate Committee on Finance before being confirmed by the United States Senate. The Secretary of the Treasury is a member of the U. S. National Security Council. The Secretary along with the Treasurer must sign Federal Reserve notes before they can become legal tender, the Secretary also manages the United States Emergency Economic Stabilization fund. Most of the Departments law enforcement agencies such as the U. S. Customs Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, secret Service were reassigned to other Departments in 2003 in conjunction with the creation of the Department of Homeland Security. The Secretary of the Treasury salary is $205,700 annually,2 Deputy Secretary of the Treasury M. Peter McPherson served as Acting Secretary of the Treasury from August 17,1988, to September 15,1988. 4 Deputy Secretary of the Treasury Kenneth W. Dam served as Acting Secretary of the Treasury from December 31,2002,5 Deputy Secretary of the Treasury Robert M. Kimmitt served as Acting Secretary of the Treasury from June 30,2006, to July 9,2006. 7 Deputy Secretary of the Treasury Neal Wolin served as Acting Secretary of the Treasury from January 25,2013, as of April 2017, there are eleven living former Secretaries of the Treasury, the oldest being George P. Shultz. The most recent Secretary of the Treasury to die was Lloyd M. Bentsen, United States Department of the Treasury
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Alexander Hamilton
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Alexander Hamilton was an American statesman and one of the Founding Fathers of the United States. As the first Secretary of the Treasury, Hamilton was the author of the economic policies of the George Washington administration. He took the lead in the funding of the debts by the Federal government, as well as the establishment of a national bank, a system of tariffs. His vision included a central government led by a vigorous executive branch. This was challenged by Virginia agrarians Thomas Jefferson and James Madison who formed a rival party and they favored strong states based in rural America and protected by state militias as opposed to a strong national army and navy. They denounced Hamilton as too friendly toward Britain and toward monarchy in general, Hamilton was born out of wedlock in Charlestown, to a married mother of British and French Huguenot ancestry and a Scottish father. His father, James A. Hamilton, was the son of laird Alexander Hamilton of Grange. Orphaned as a child by his mothers death and his fathers abandonment, Hamilton was taken in by an older cousin and he was recognized for his intelligence and talent, and sponsored by a group of wealthy local men to travel to New York City to pursue his education. Hamilton attended Kings College, choosing to stay in the Thirteen Colonies to seek his fortune, discontinuing his studies before graduating when the college closed its doors during British occupation of the city, Hamilton played a major role in the American Revolutionary War. At the start of the war in 1775, he joined a militia company, in early 1776, he raised a provincial artillery company, to which he was appointed captain. He soon became the aide to General Washington, the American forces commander-in-chief. Hamilton was dispatched by Washington on numerous missions to convey plans to his generals, after the war, Hamilton was elected as a representative to the Congress of the Confederation from New York. He resigned to practice law, and founded the Bank of New York, Hamilton was among those dissatisfied with the weak national government. He led the Annapolis Convention, which successfully influenced Congress to issue a call for the Philadelphia Convention in order to create a new constitution, Hamilton became the leading cabinet member in the new government under President Washington. These programs were funded primarily by a tariff on imports, to overcome localism, Hamilton mobilized a nationwide network of friends of the government, especially bankers and businessmen, which became the Federalist Party. A major issue in the emergence of the American two-party system was the Jay Treaty and it established friendly trade relations with Britain, to the chagrin of France and the supporters of the French Revolution. Hamilton played a role in the Federalist party, which dominated national. In 1795, he returned to the practice of law in New York and he tried to control the policies of President Adams
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Andrew Jackson
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Andrew Jackson was an American soldier and statesman who served as the seventh President of the United States from 1829 to 1837 and was the founder of the Democratic Party. Before being elected to the presidency, Jackson served in Congress, as president, Jackson sought to advance the rights of the common man against what he saw as a corrupt aristocracy and to preserve the Union. Jackson was born in 1767 somewhere near the border between North and South Carolina, into a recently immigrated Scots-Irish farming family. During the American Revolutionary War, Jackson acted as a courier, at age 13, he was captured and mistreated by the British. He moved to Tennessee and practiced as a lawyer, in 1791, he married Rachel Donelson Robards. The couple later learned that Rachels previous husband had failed to finalize their divorce, Jackson served briefly in the U. S. House of Representatives and the U. S. Senate. Upon returning to Tennessee, he was appointed a judge on the Tennessee Supreme Court, in 1801, Jackson was appointed colonel in the Tennessee militia, and was elected its commander the following year. He built the Hermitage plantation in 1804, in 1806, he killed a man in a duel over a matter of honor regarding his wife. He led Tennessee militia and U. S. Army regulars during the Creek War of 1813-1814, Jackson won a decisive victory in the War of 1812 over the British army at the Battle of New Orleans, making him into a national hero. Because Spanish Florida was a refuge for blacks escaping slavery, who allied with the Seminole Indians, Jackson invaded the territory in 1816 to destroy the Negro Fort. He led an invasion in 1818, as part of the First Seminole War, resulting in the Adams–Onís Treaty of 1819. Jackson briefly served as Floridas first Territorial Governor in 1821, Jackson was nominated by several state legislatures to be a candidate for president in 1824. Although he earned a plurality in both the electoral and popular vote against three major candidates, Jackson failed to get a majority and lost in the House of Representatives to John Quincy Adams, Jacksons supporters founded what became the Democratic Party. He ran again for president in 1828 against Adams, building and expanding upon his base of support in the West and South, he won in a landslide. He blamed the death of his wife, Rachel, which occurred after the election, on the Adams campaigners, as president, Jackson faced a threat of secession by South Carolina over the Tariff of Abominations, which Congress had enacted under Adams. In contrast to several of his successors, he denied the right of a state to secede from the union or to nullify federal law. The Nullification Crisis was defused when the tariff was amended and Jackson threatened the use of force if South Carolina attempted to secede. Jackson believed strongly in majority rule and he supported direct election of senators and abolition of the Electoral College, believing that these reforms would provide average citizens with greater power
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U.S. state
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A U. S. state is a constituent political entity of the United States of America. There are 50 states, which are together in a union with each other. Each state holds administrative jurisdiction over a geographic territory. Due to the shared sovereignty between each state and the government, Americans are citizens of both the federal republic and of the state in which they reside. State citizenship and residency are flexible, and no government approval is required to move between states, except for persons covered by certain types of court orders. States range in population from just under 600,000 to over 39 million, four states use the term commonwealth rather than state in their full official names. States are divided into counties or county-equivalents, which may be assigned some local authority but are not sovereign. County or county-equivalent structure varies widely by state, State governments are allocated power by the people through their individual constitutions. All are grounded in principles, and each provides for a government. States possess a number of powers and rights under the United States Constitution, Constitution has been amended, and the interpretation and application of its provisions have changed. The general tendency has been toward centralization and incorporation, with the government playing a much larger role than it once did. There is a debate over states rights, which concerns the extent and nature of the states powers and sovereignty in relation to the federal government. States and their residents are represented in the federal Congress, a legislature consisting of the Senate. Each state is represented in the Senate by two senators, and is guaranteed at least one Representative in the House, members of the House are elected from single-member districts. Representatives are distributed among the states in proportion to the most recent constitutionally mandated decennial census, the Constitution grants to Congress the authority to admit new states into the Union. Since the establishment of the United States in 1776, the number of states has expanded from the original 13 to 50, alaska and Hawaii are the most recent states admitted, both in 1959. The Constitution is silent on the question of states have the power to secede from the Union. Shortly after the Civil War, the U. S. Supreme Court, in Texas v. White, as a result, while the governments of the various states share many similar features, they often vary greatly with regard to form and substance
