McFadden Act
Find sources: "McFadden Act" – news · newspapers · books · scholar · JSTOR (June 2021)
The McFadden Act is a United States federal law that reformed the U.S. banking system.[1] The Act liberalized branch banking rules, forcing states to give the same branching rights to national banks and state banks.[2] [1] The bill, based on the recommendations made by former Comptroller of the Currency Henry May Dawes, was signed into law by President Calvin Coolidge on February 25, 1927.[3]
It is named after Louis Thomas McFadden, member of the United States House of Representatives and Chairman of the United States House Committee on Banking and Currency.[3]
The bill was first introduced in Congress by McFadden on February 11, 1924.[3]
The Act sought to give national banks competitive equality with state-chartered banks by letting national banks branch to the extent permitted by state law.[4] The McFadden Act specifically prohibited interstate branching by allowing each national bank to branch only within the state in which it is situated. Under a grandfather clause, three major banks were allowed to continue conducting interstate banking (Northwestern National Bank, First Bank Stock Corporation, and First Western Bank).
Although the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 [5] repealed this provision of the McFadden Act, it specified that state law continues to control intrastate branching, or branching within a state's borders, for both state and national banks.
See also
[edit ]References
[edit ]- ^ a b Rajan, Raghuram G.; Ramcharan, Rodney (2016). "Constituencies and Legislation: The Fight Over the McFadden Act of 1927". Management Science. 62 (7): 1843–1859. ISSN 0025-1909.
- ^ "McFadden Act of 1927 | Federal Reserve History". www.federalreservehistory.org. Retrieved 2025年02月16日.
- ^ a b c Preston, H. H. (1927). "The McFadden Banking Act". The American Economic Review. 17 (2): 201–218. ISSN 0002-8282.
- ^ "McFadden Banking Act". Encyclopedia.com. Retrieved June 12, 2022.
McFADDEN BANKING ACT of 25 February 1927 permitted national banks to operate home-city branch offices in cities where state banks had similar privileges.
- ^ Lemonade or Lemon? Riegel-Neal Act of 1994
