Banking

​ = __Banking Industry__ =

 =Why was the banking industry created? = As the industrial revolution grew, investors and financial institutions were needed to provide money for bigger growth. Financiers and banks then became an important part as an industry and factory in the growth of revolution.

 How did the banking industry grow?
= = = Andrew Mellon = Andrew Mellon was born on March 24th, 1855 in Pittsburgh, Pennsylvania he was an American banker. He joined his father's banking house in 1874 and through the next three decades built up a financial success by supplying for corporations in industries such as aluminum, steel, and oil. By the early 1920's he was one of the richest mans in the United States. Andrew Mellon then went on to becoming President of Mellon National Bank
 * The banking industry grew once they began to build more banks in many cities and states. The banks became an important part of the city
 * It also grew from American banker Andrew Mellon

= = = = = = = = = J.P. Morgan = John Pierpoint, also known as J.P. Morgan, was born on April 17, 1837 in Hartford, Connecticut. Hes known as one of the most influential bankers in history. He was born into a very rich family and after completing college at the English school in Boston he went to the University of Gottingen Germany. After that he came back to the U.S. in 1857 and got a job working for a private banking house. In 1860 he became the head of the banking house he was currently working at and his father also became the head of the same private banking house. Once his father died he had already proved to everyone he was a successful banker. He worked with many more banks, helped out the government, and he even helped with the railroad companies. When he died on March 31, 1913 he left an $80 million estate and he became one of the greatest bankers of all time because even though he had millions of dollars he had a huge amount of power of people that followed him.

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Working Conditions
The working conditions for the banking industry had branch office jobs but mostly teller positions which requires communication with customers and other workers. Many workers worked about 35 hours a week, they worked 5 days a week plus sometimes on Saturdays.

= Government Regulations for banking industry =

Federal Reserve Act
The Federal Reserve Act of 1913 occured on December 23, 1913. It established as the Federal Reserve system as the central banking of the United States. This happened because by 1913 the American economy growth required a a better controlled and safer banking system. The Federal Reserve Act controls...
 * The government can supervise and control banks.
 * Maintains the American financial system.
 * Provides financial services to the U.S. government, the public, and financial institutions.
 * The Federal Reserve also makes loans to commercial banks.

= The Banking Industry Today = The first bank was created of the United States was created because the government was in debt from the revolutionary war. Today there are banks like National City Bank which is a bank now used all over the world. Here is the history of the first bank of the United States. == ==

First Bank of the United States [[image:http://thebsreport.files.wordpress.com/2009/07/firstbank.jpg width="270" height="207" align="center" caption="First Bank"]]
In February 1791, the first bank of the United States was discovered and created. On December 12, 1791 this bank then opened for business in Philadelphia, Pennsylvania. In 1772 there was what they called "The Panic of 1772" just after 2 months after opening this bank had a huge impact on the economy. It was called this because of how many people were taking money out of the bank and how many people were using the bank so much. The bank was very successful but once they had problems with the government they shut them down on January 24, 1811 and the bank finally shut their doors on March 3, 1811.

=Questions= . when did the first bank finally close its doors? . why did they have to go out of business? . when did Andrew Mellon become the richest man in the united states? . how much money did J.P Morgan leave when he died ? . why did the federal reserve act happen?

References: [] [] http://www.fdic.gov/regulations/laws/important/index.html http://usgovinfo.about.com/library/weekly/aa081599.htm http://www.financial-inspiration.com/JP-Morgan-biography.html http://eh.net/encyclopedia/article/cowen.banking.first_bank.us

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