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Economy

Signs the McFadden Act limiting national-bank branching

On 1927-02-25 President Coolidge signed the McFadden Act, amending national-banking law to restrict interstate branching by national banks and to align national banks' branching rights with those of state-chartered banks.

The law shaped the structure of U.S. banking for decades by restricting national-bank branch expansion and deferring to state branching rules, influencing regional banking competition and consolidation.

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