Ten Obscure Facts About Banks

Author: BankFeeInsider.com     Friday, February 07, 2014 12:00 AM

History of banking around the globe is fascinating since most of the laws have developed from criminal activity. Access to funds has been the primary reasons that banks were established centuries ago. Some of the most famous characters in history gained notoriety when violating the safekeeping of money belonging to other people and institutions.

1. Alexander Hamilton, Secretary of the Treasury in 1791, proposed that $10 million in stock be sold to establish the First Bank of the United States in Philadelphia. The bank’s first load was to the government for $2 million that would become the government’s stake in the new bank. The U.S. government would repay this loan in 10 annual installments.

2. In 1913, the Federal Reserve Act instituted 12 Federal Reserve banks, which are headed by the seven-member board. The Federal Reserve Note is the only US currency traded within the Reserve.

  • Boston
  • New York
  • Philadelphia
  • Cleveland
  • Richmond
  • Atlanta
  • Chicago
  • St. Louis
  • Minneapolis
  • Kansas City
  • Dallas
  • San Francisco

3. Clay County Savings Association was the first bank Jesse James’ robbed. Located in the town of Liberty, Missouri, this bank experienced the first armed robbery in a bank in the U.S. after the Civil War.

4. The top five bank holding companies are: Citigroup, Bank of America, JP Morgan Chase, Wells Fargo and Deutsche Bank.

5. More than 1,300 savings institutions are insured under the FDIC. In addition, the FDIC insures more than 5,500 banks with over 73,000 branches.

6. Credit union deposits are protected against loss under the National Credit Union Administration, not the FDIC. Depositors will want to verify that credit unions and banks are members. Displaying a sign does not make a bank an active member.

7. Consumers are protected against shady banking methods under the Fair Credit Reporting Act, Regulation CC and Regulation AA, which is the Unfair or Deceptive Acts or Practices. Access to loans, credit and personal funds are governed under these federal laws.

8. At the Dunbar Armored facility in Los Angeles, California, the largest cash robbery, approximately $18.9 million, occurred. Almost $10 million of this cash was never recovered.

9. Banking institutions hold the naming rights to sports arenas in the NFL, NBA, MLB and NHA. Advertising is a lucrative business for the banking industry. Sports fans enjoy affordable ticket prices because of these arrangements.

10. More than $1 billion was stolen from the Central Bank of Iraq just before the US bombing campaign started in March 2003. About $650 million was found in Saddam’s palace, but the balance was never recovered.

 

Source: BFI