In particular, in 1838 New York introduced a new approach, known as free banking, which in the following two decades was emulated by many other states. The nature of free banking and the states’ experience with this approach to regulation have been the subject of profound misconceptions.
In order to comply with the rules, and to continue providing traditional trust and fiduciary services, banks would have to establish complex and costly systems and procedures for monitoring the amount and types of fees received from each trust and fiduciary account and these costs likely would be passed on to consumers.