Historical Timeline

The 2000s

By 2004, three banks exceed a trillion dollars in assets. The number of banks declines. The number of branches increases. Interest rates are low. A housing boom occurs.

2000

• In March, the dot-com bubble bursts.
• J.P. Morgan & Company merges with the Chase Manhattan Corporation to become J.P. Morgan Chase, which is another example of the joining of investment and commercial banks.

2001

• 9/11
• Enron Corporation files for bankruptcy. The filing becomes the largest U.S. corporate failure in history and is emblematic of well-planned corporate fraud.
• The U.S. experiences a budget deficit.
• CitiGroup reports bank and non-bank assets of $1,484,000,000,000.

International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001

This act accomplishes the following:

• Requires additional record keeping and reporting by financial institutions for foreign nationals
• Requires financial institutions to establish anti-money laundering programs
• Requires further cooperation between financial institutions and government agencies in fighting money laundering.

Updating and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (U.S.A Patriot Act)

This act provides the U.S. Treasury with extra authority to investigate money laundering and other activities that might be undertaken to finance terrorist actions or disrupt banking operations.

2002

• WorldCom files for Chapter 11 bankruptcy, making it the largest filing in U.S. history.
• The euro replaces the currency of 12 of the 15 countries in the European Union.

Sarbanes-Oxley Act of 2002

This act passes in response to the accounting scandals of Enron, WorldCom, and Tyco and affects all business, including banking.

This act:

• Establishes the Public Company Oversight Board to regulate public accounting firms that audit publicly traded companies
• Prohibits accounting firms from providing both auditing and consulting services
• Requires that CEOs and CFOs certify the annual and quarterly reports of publicly traded companies.

2003

U.S. Presidents
during the 2000s

  George W. Bush (2001-2009)

• For the first time, electronic payments (automatic transactions, credit cards, and debit cards) totaling $44.5 billion outnumber paper checks totaling $36.7 billion.
• The Federal Reserve Board reduces the number of locations at which checks are processed from 45 to 32. By 2006, the number is 23.

Fair and Accurate Credit Transactions (FACT) Act of 2003

This act:

• Improves the accuracy and transparency of the national credit reporting system
• Enhances consumer rights in situations involving alleged identity theft.

Check Clearing for the 21st Century Act of 2003 (Check 21)

This act fosters innovation in payment systems.

2004

• Both J.P. Morgan Chase and Bank of America report more than $1 trillion of bank and non-bank assets.
• Citigroup agrees to pay $2.65 billion to settle a lawsuit involving underwriting work of WorldCom.
• The FDIC consolidates into six regional offices.

2005

• Citigroup agrees to pay $2 billion to settle a class-action lawsuit over its role in the Enron collapse.
  In 2002, Citigroup sold stocks and bonds in the company before Enron filed for bankruptcy.
• Meetings continue to be held on the Basel II Accord, which is scheduled to be implemented in the U.S. on January 1, 2008.
• The definition of capital is unchanged; however, Basel II allows the largest banks to use their own internal ratings systems to measure credit risk, as well as requires banks to measure and hold capital against operational risk.