Jackson then appointed Roger B. Taney as acting secretary, who implemented Jackson's policy.[289] With the loss of federal deposits, the Bank had to contract its credit.[290] Biddle used this contraction to create an economic downturn in an attempt to get Jackson to compromise. Biddle wrote, "Nothing but the evidence of suffering abroad will produce any effect in Congress."[291] The attempt did not succeed, the economy recovered and Biddle was blamed for the recession.[292]
Jackson's actions led those who disagreed with him to form the Whig Party. They claimed to oppose Jackson's expansion of executive power, calling him "King Andrew the First", and naming their party after the English Whigs who opposed the British monarchy in the 17th century.[293] In March 1832, the Senate censured Jackson for inappropriately taking authority for the Treasury Department when it was the responsibility of Congress and refused to confirm Taney's appointment as secretary of the treasury.[294] In April, however, the House declared that the bank should not be rechartered. By July 1836, the Bank no longer held any federal deposits.[295]
Jackson had Federal funds deposited into state banks friendly to the administration's policies, which critics called pet banks.