Federal Reserve Case Study Memo

Federal Reserve Bank Atlanta, is one of the 12 Federal Reserve Banks the region it serves is primarily the south, which includes Alabama, Florida, and Georgia, and parts of Louisiana, Mississippi, and Tennessee. As part of the Federal Reserve System, the Atlanta Fed helps regulate and supervise financial institutions, set monetary policy, and operate the nation 's payments systems. Brian works primarily in real estate, working as a consultant with Atlanta’s federal reserve bank. Brian and Lauren both serve in the regulation supervision roles at the fed, primarily in Consumer Compliance, Credit and Risk Management, Safety & Soundness. Currently their research and consulting issues are primarily in the redlining cyber security, and manager turnover.

1. National Banking Acts of 1863 and 1864 The National Banking Acts of 1863 and 1864 were attempts to assert some degree of federal control over the banking system without the formation of another central bank. The Act had consists three primary purposes such as (1) create a system of national banks, (2) to create a uniform national currency, and (3) to create an active secondary market for Treasury securities to help finance the Civil War (for the Union 's side).

He introduced plans for the First Bank of the United States, established in 1791 which was designed to be the financial agent of the Treasury Department. The Bank served as a depository for public funds and assisted the Government in its financial transactions. The First Bank issued paper currency, used to pay taxes and debts owed to the Federal Government. Hamilton also introduced plans for a United States Mint. Though he wanted the Mint to be a structural part of the Treasury, he lost the battle to Jefferson and it was established in 1792 within the State Department.

As our nation first formed, there was much concern about the role of our nation’s leader and how powerful they should be. When the Articles of Confederation were written in 1781, it did not provide for an executive branch. In 1787, at the first Constitutional convention, the delegates agreed that there had to be an executive branch which would be separate from the legislative branch. They felt this would avoid any corruption and would provide for checks and balances to prevent dictatorial rule by this branch of government. Though small, the executive branch plays a crucial role in running the United States.

Our 32nd president, Franklin D. Roosevelt, in his speech, The Banking Crisis, explain to the common man about the legislation that has taken place and the directions the American people will be taking. His purpose is to address his recent decision of closing all banks for an extended holiday. He creates a welcoming tone in order to get through a skeptical audience that had lost hope in the government and had been demoralized by the depressed economy. Roosevelt opens his speech by addressing the citizen of the United States whom he referred as “My friends”, which set up a friendly, and welcoming tone that was much needed during the Great Depression.

The need for a national bank was very much so necessary. Hamilton also convinced president Washington to sign the bank bill by his lengthy report that stated: “This criterion is the end, to which the measure relates as a mean. If the end be clearly comprehended withan any specified powers, collecting taxes and regulating the currency, and if the measure have an obvious relation to that end, and is not forbidden by any particular provision of the constitution, it may safely be deemed to come with the compass of national authority.”

Also, the Bank War in 1832, which was President Andrew Jackson vetoing a bill for the renewal of the charter for the Bank of the United States (leading to its expiration in 1836), caused a separation and debate between those who favored the Bank of the United States and those who supported Jackson and wanted it gone. These changes were caused by a difference in the opinions of the citizens. Additionally, the federal government was still fairly new and was still testing what the could do and what was going too far, causing even more

The creation of the first bank in the United States prompted a political debate which started in 1791, and went on in the following years. Hamilton’s plan foresaw a bank provided with special powers and privileges, which gave birth to a wide opposition. Although Hamilton 's idea continues to exist in today’s economic environment, at that time his proposal was met with widespread resistance from individuals such as James Madison and Thomas Jefferson, who considered the creation of a federal bank as unconstitutional. Following to a broad interpretation of the Constitution, Hamilton argued that in order to have an effective bank, Congress should be provided with all the powers required. Jefferson disagreed with Hamilton, and claimed that the establishment of such a bank was not consistent with the powers that the Constitution granted to Congress.

Thomas Jefferson as an Anti Federalist believes in states’ rights, instead of a strong central government. “Dependence begets subservience and venality, suffocates the germ of virtue, and prepares fit tools for the designs of ambition,” a quote by Jefferson which shows his views that if the government would interfere in the lives of the American people, would allow corruption of the government. For example, Nazi Germany became corrupt as the government did interfere in the lives of the people, and they eventually became submissive followers and blind of the injustices. If the lives of the American people were separate from the government, then it would allow an honest government, according to Jefferson. With his ideology, he gets that the banks would be an imposition in the lives of the people.

Federal Reserve Outlook for Economy The 2017 economy seems to be trending in the right direction according to an article by CNN (Long, 2017). The economy of America has been fighting its way to recovery since 2008. The Great Recession led to a financial crisis that the country has not seen since the Great Depression that began in 1929. However, the economy seems to finally be back on track.

The main point of Thomas Jefferson’s argument is that the power of the United States to create a national bank is not stated in the Constitution. Because the power is not specifically enumerated, it is unconstitutional. The main point of Alexander Hamilton’s argument is that there are many things that the United States may not do, but creating a national bank is not specifically stated, making it constitutional. Hamilton is building his argument on the tenth section of the first article of the Constitution.

As the country started to grow, the power of the Federal Government had also started to grow. The power that the Federal Government had, started to create conflict between the States ' and the Federal Government. By the 19th century, cases started to appear more frequently that challenged States ' rights against the National Government. Around the early 1800s, the major national concern was finical stability. The charter of the Bank of the United States had expired in 1811 and the Democratic-Republican Madison administration and the Republican Congress had failed to renew it.

He successfully argued for the assumption of state debts by the federal government and the establishment of the first national bank – a private, but partially government-owned institution. He firmly established the principles of financial trading. Due to his efforts, the creditworthiness of the United States was restored. Hamilton’s accomplishments as Treasury Secretary were not achieved without a struggle. His congressional opponents tried to exhaust him by demanding detailed reports on the workings of the treasury department with incredibly short delivery dates.

As it all came together the bank seemed to be a great thing that would increase effectual aid and provide energy to trade. Shortly after the gentlemen of Virginia rejected the bill by saying it was a suffering to the country because it was not debated like all the other bills. Ames proceeded to say that all of the laws in the constriction should be supported and should be decided by congress not by men. Therefore it was believed that it was too much animosity with some people and the bank and that it needed to be overlooked and debated more carefully. This led him to wonder if the corporate powers could even stretch the constitution like that.

To conduct the nation’s monetary policy is to “promote maximum employment, stable prices, and moderate long-term interest rates in the U.S. economy;” (Board). The Federal Reserve promotes the stability of the financial system. Promoting the stability of the financial system is to seek to “minimize and contain systemic risks through active monitoring and engagement in the U.S. and abroad;” (Board). The Federal Reserve promotes the safety and soundness of individual financial institutions, “and monitors their impact on the financial system as a whole;” (Board). The Federal Reserve “fosters payment and settlement system safety and efficiency through services to the banking industry and the U.S. government that facilitate U.S.-dollar transactions and payments;” and “promotes consumer protection and community development through consumer-focused supervision and examination, research and analysis of