In November 1910, six men – Nelson Aldrich, A. Piatt Andrew, Henry Davison, Arthur Shelton, Frank Vanderlip, and Paul Warburg – met at the Jekyll Island Club. The meeting and its purpose were secrets, and participants did not admit that the meeting occurred until the 1930s.
An attempt to monopolize the copper market failed. Americans withdraw their capital in a vote of no-confidence. Banks can't cover their client's deposits due to fractional reserve banking.
The majority of the Republican Party allows banks to issue National Bank Notes in an emergency. Emergency notes were to be back first by government securities and second by commercial paper.
Republican and Democratic party representatives lead by Republican Nelson Aldrich. Aldrich dominated the commission and represented the New York Banking industry with who he met bi-monthly.
The National Citizens’ League—formed at Warburg’s urging, to “carry an active campaign of education and propaganda for monetary reform... outlined in Senator Aldrich’s plan.”
Created a system of private and public entities. Congress required that all nationally chartered banks become members of the Federal Reserve System. Banks were required to purchase specified non-transferable stock in their regional Federal Reserve banks, making them owners of the regional banks.
Many investors who had borrowed or leveraged heavily to buy stocks, were wiped out financially—leading to widespread bank failures. Banker and Wall Street speculation, faltering share prices, numerous shares having been bought on margin, and a lack of cash lead to the market crash of 1929
The Pecora Investigation uncovered a wide range of abusive practices on the part of banks and bank affiliates. These included a variety of conflicts of interest, such as the underwriting of unsound securities in order to pay off bad bank loans, as well as "pool operations" to support the price of bank stocks. The hearings galvanized broad public support for new banking and securities laws.
US President Franklin D. Roosevelt "forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States. The reason for the order was to remove the constraint on the Federal Reserve preventing it from increasing the money supply during the depression. The US Government, under the threat of violence, seized the gold of the American People.
The law gave power to the Federal Reserve to regulate retail banks, separated investment banking from retail banking, and prohibited investment banks from having a controlling interest in retail banks. It also created the Federal Deposit Insurance Corporation (FDIC) and made the Federal Government responsible for deposits in American Banks up to a certain amount.
The US Government backs the failures and losses of privately owned for-profit banks with taxpayer funding. Allowing banking institutions to unburden themselves from public accountability for speculating and losing their depositors' money.
The Federal Open Market Committee works on behalf of privately owned for-profit banks enabling them to stay in business, collect American assets, and expand market control. All funded through taxpayer debt levied on the American People by Congress.
Gave the Federal Reserve more independence from the executive branch and removed the Treasury Secretary and Comptroller of the Currency from the Federal Reserve board. The Banking Act of 1935 gave the FDIC a permanent status and mission to support the speculation and gambling of privately owned banks in the United States.
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