Is it true the "Federal Reserve" is a privately held corporation? If so, who own it?

Question

Is it true the "Federal Reserve" is a privately held corporation? If so, who own it?

Answer 1

Watch this ... Zeitgeist - The Movie: Federal Reserve (part 1 of 5)

http://video.google.com/videosearch?q=ze...

Answer 2

No, it is not a privately owned corportation in the classical sense. The Federal Reserve System itself is publicly owned and controlled, but the branches could be considered closely regulated corporations.

To review:

The Federal Reserve System is a congressionally-chartered agency like the USPS and NASA. It is organized with a 100% government agency at the top (the Board of Governors), and branches beneath them that are organized like corporations with member banks as shareholders.

(Ref: http://www.federalreserveeducation.org/f... , http://www.federalreserve.gov/generalinf... )

The Board of Governors are all appointed for 14-year terms by the president and confirmed by congress. It operates per it's charter and laws set by congress. it is overseen by congress. There is no structure or mechanism for private ownership at this level; it is a government agency. You can confirm this from a number of government sites that list it as a government agency (e.g. http://www.whitehouse.gov/government/ind... Board members are forbidden by law to have any economic interest in a private bank. (Ref: Title 12 chapter 3 of the U.S. Legal Code). The Board determines monetary policy and provides high level oversight of the branches.

The 12 branches, however, are organized to involve member banks in the day-to-day operation.  Member banks are required to buy shares in their branch. Each bank has one vote. The shares get a standard 6% dividend. They can vote for 6 of their 9 board members.  All 'profit' from the Federal Reserve branches are turned over to the Treasury at the end of the year.

Clearly the Board of Governors and the system itself is not private. But are the Fed branches 'private'? The unique duality of control allows for reasonable peple to argue either side. Certainly it is not privately 'owned' in the classic sense as shares never change in value, have no relationship to the worth of the bank, and cannot be sold to the open market. However, clearly the ability to vote for 6 of their 9 directors (of which are usually almost approved by the Board of Governors) gives the member banks considerable control of the day-to-day operations. Another telling sign is the Board of Governors are paid as Federal employees while the branches use their own payroll system. In the court ruling "Lewis vs US", it was determined that the branches can be considered 'private' for the purposes of tort law (i.e. they can be sued) relative to the day to day operations, but probably not where they are performing official government functions. (Ref: http://nesara.org/court_summaries/lewis_... )

Answer 3

Wooddrow Wilson signed it into law in the year 1913 and regreted it. Freedom to Fasism. Study it go back in history. Illuminati 1774- Jesuit order) Sun God.

Answer 4

I own the federal reserve

Answer 5

Depending on the reason for asking your question, what may be more pertinent is "who owns is 12 central banks".

That point was discussed in detail in this recent Yahoo Answers question.  

http://answers.yahoo.com/question/index;...

And this one where more people answered in detail.

http://answers.yahoo.com/question/index;...

Answer 6

Who owns the Federal Reserve?

The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation's central banking system, are organized much like private corporations--possibly leading to some confusion about "ownership." For example, the Reserve Banks issue shares of stock to member banks. However, owning Reserve Bank stock is quite different from owning stock in a private company. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

Answer 7

I think you better get on line and find the truth. the federal reserve

is nothing more than a joke on us. our money used to be based on silver trade now our money is based on notes that are not worth the paper its printed on thats part of the reason were in the so much trouble in the u.s. we make money from air