The Changing Face of American Banking: Deregulation, Reregulation, and the Global Financial System

289 Pages·2014·2.673 MB·English

by  Ranajoy Ray Chaudhuri (auth.)

The Changing Face of American Banking
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The Changing Face of American Banking
Deregulation, Reregulation, and the Global
Financial System
Ranajoy Ray Chaudhuri
ISBN 978-1-137-36581-1 ISBN 978-1-137-36121-9 (eBook)
DOI 10.1057/9781137361219
the changing face of american banking
Copyright © Ranajoy Ray Chaudhuri, 2014.
All rights reserved.
First published in 2014 by PALGRAVE MACMILLAN® in the United States—a division
of St. Martin’s Press LLC, 175 Fifth Avenue, New York, NY 10010.
Where this book is distributed in the UK, Europe and the rest of the world, this is by
Palgrave Macmillan, a division of Macmillan Publishers Limited, registered in England,
company number 785998, of Houndmills, Basingstoke, Hampshire RG21 6XS.
Palgrave Macmillan is the global academic imprint of the above companies and has
companies and representatives throughout the world.
Palgrave® and Macmillan® are registered trademarks in the United States, the United
Kingdom, Europe and other countries.
ISBN 978-1-137-36581-1
Library of Congress Cataloging-in-Publication Data
Ray Chaudhuri, Ranajoy.
The changing face of American banking / Ranajoy Ray Chaudhuri.
pages cm
Includes bibliographical references and index.
ISBN 978-1-137-36581-1 (hardcover : alk. paper)
1. Banks and banking—United States. 2. Banking law—United States. 3. United
States—Economic policy. 4. Financial crises—United States. I. Title.
HG2491.R39 2014
332.10973—dc23
2014006917
Design by Amnet.
First edition: August 2014
10 9 8 7 6 5 4 3 2 1
Contents
List of Tables vii
List of Figures ix
Acknowledgments xi
1 A Brief Chronology of U.S. Banking Regulations 1
2 The Free Banking Era 7
3 The Big Markets: New York and California 21
4 The Little Markets: The Story of Unit Banks 35
5 The Early Days of the Federal Reserve 43
6 The Great Depression and the Glass-Steagall Act 71
7 The Stable Years 83
8 The Housing Market and the Savings and Loan
Associations Crisis: The 1980s 95
9 Deregulation and the Great Recession: The 1990s
and the 2000s 111
10 Reregulation: The Response to the Financial Crisis 147
11 Wall Street and Main Street: Banking Regulations
and the Real Economy 185
12 U.S. Banks and the Global Financial System 201
13 The Road Ahead 211
Notes 217
Bibliography 241
Index 261
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List of Tables
5.1 The Federal Reserve’s Primary Dealers List 61
9.1 Business Cycles since 1854 127
11.1 Total Assets, Equity, Loans, and Total Deposits in
Fifty States and DC 194
11.2 Total Assets, Equity, Loans, and Total Deposits in
New York 195
11.3 Total Assets, Equity, Loans, and Total Deposits
in California 195
11.4 Total Assets, Equity, Loans, and Total Deposits
in Illinois 195
11.5 Total Assets, Equity, Loans, and Total Deposits
in Texas 195
12.1 Total Deposits, Domestic Deposits, and Foreign Deposits
in Fifty States and DC 203
12.2 Total Deposits, Domestic Deposits, and Foreign Deposits
in New York 203
12.3 Total Deposits, Domestic Deposits, and Foreign Deposits
in California 203
12.4 Total Deposits, Domestic Deposits, and Foreign Deposits
in Illinois 203
12.5 Total Deposits, Domestic Deposits, and Foreign Deposits
in Texas 203
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List of Figures
1.1 Number of U.S. Commercial Banks, Branches,
and Offices 6
5.1 Federal Reserve Districts 57
8.1 Total Number of Savings Institutions in the
United States by Year 107
11.1 Number of U.S. Commercial Banks by Year 193
11.2 Number of Branches per Bank by Year 194
11.3 Total U.S. Assets, Equity, Loans, and Total Deposits
by Year 194
11.4 Tobacco Products 197
11.5 Food and Kindred Products 198
11.6 Electronic and Other Equipment 198
11.7 Industrial Machinery and Equipment 199