Federal Reserve Act

Federal Reserve Act (1913)

1) Link to the Text of the Act
Read the statute (12 U.S.C. § 221 et seq.)

2) Why It Was Done
Enacted to create a central banking system for the United States. The Act established the Federal Reserve System to provide a safer, more flexible, and more stable monetary and financial system.

3) Pre-existing Law or Constitutional Rights
Before 1913, the U.S. lacked a true central bank. Banking panics in the late 19th and early 20th centuries, especially the Panic of 1907, exposed the need for a lender of last resort and coordinated monetary policy.

Acts

Dodd–Frank Wall Street Reform and Consumer Protection Act

Dodd–Frank Wall Street Reform and Consumer Protection Act (2010)

1) Link to the Text of the Act
Read the statute (12 U.S.C. § 5301 et seq.)

2) Why It Was Done
Enacted after the 2008 financial crisis, Dodd–Frank aimed to reduce systemic risk, increase transparency, and protect consumers from abusive financial practices.

3) Pre-existing Law or Constitutional Rights
The Glass–Steagall Act (1933) had separated commercial and investment banking but was repealed in 1999. Existing securities and banking laws failed to prevent the 2008 crisis. Dodd–Frank created a modernized regulatory framework.