The bank, which catered to Northeastern business interests, was influenced by its Western and conservative tendencies. When the US Bank tightened monetary policy regarding “soft money,” many Western banks, which liked soft money to make loans easily, had to close. Although Jackson himself was in favor of “hard money,” the U.S. Bank's move angered him. He responded by moving federal deposits from American Bank to state banks. This would cause economic instability, depressions, bank failures, and a boom/bust cycle until the Great Depression