Financial History Issue 116 (Winter 2016) | Page 36
Trust
This
Bank
By Bob Watt
What is the difference between a trust
company and a bank? The short answer
today is: there is no difference. However, as recently as 100 years ago there
was a considerable difference between
the two types of financial institutions in
the United States. Trust companies were
specialized banking institutions that have
since vanished or evolved into commercial
banks. Commercial banks now provide
the same services that made trust banks
unique in the United States for about 90
years. During the late 19th and early 20th
centuries, trust c