USA HISTORY

Detailed explanation-1: -Guided in his veto decision by his constitutional convictions and political exigencies, Jackson’s victory over the bank doomed central banking in the United States until the creation of the Federal Reserve in the early twentieth century.

Detailed explanation-2: -On September 10, 1833, Jackson removed all federal funds from the Second Bank of the U.S., redistributing them to various state banks, which were popularly known as “pet banks.” In addition, he announced that deposits to the bank would not be accepted after October 1.

Detailed explanation-3: -What Are the Pet Banks? The pet banks definition in U.S. history were state banks that were selected to receive surplus Federal Treasury funds in 1833. These pet banks were state run banks that were loyal to President Andrew Jackson. The ‘’pet bank” nickname came from this relationship.

Detailed explanation-4: -Impact of Jackson’s Veto The Bank’s charter gave the institution too much power over the nation’s financial markets, he argued-power that enabled it to generate huge profits for its stockholders, most of whom were “foreigners” and “our own opulent citizens.”