United States Banking Sysetm

To start off with the United States has a dual banking system. This refers to the parallel state and federal banking systems. The federal system is based on a federal bank charter, powers are defined under federal law, is operated under federal standards and is overseen by a federal supervisor. The state system is they same yet different. It is based on a state bank charter, its powers are defined by state law, it operated under state standards, and is overseen by a state supervisor.

The Office of the Comptroller of Currency, also known as the OCC charters the national banks. It also makes sure that the national banks are safe and sound. They also conduct risk assessments and ranks the national banks.

This dual system also relies on the checks and balances system.

There is also the Federal Reserve. I believe I have talked about it in an earlier blog but it applies here too:
-it is independent from the Treasury Department
-its role is to foster a sound banking system and healthy economy
-it regulates and supervises the economy
-it has provided an enormous amount of liquidity to private institutions to restore the normal functioning of credit
-it also was the agency that gave $85 billion to AIG in loans

Works Cited: http://www.occ.treas.gov/ and "This Is Not Your Father's Recession...Or Is It" By Charles S. Gascon