Who owns the Federal Reserve Bank? From what I understand, it is as "Federal" as Federal Express.?

Question

Who owns the Federal Reserve Bank? From what I understand, it is as "Federal" as Federal Express.?

Answer 1

Oishi is the educated one on this subject.  And I believe he has earned the "best answer".  However as a supplement to his answer....

I source a 1982 United States Court of Appeals ruling.

Lewis v. United States, 680 F.2d 1239 (1982)

The Plaintiff, who was injured by a vehicle owned and operated by a federal reserve bank, attempted to sue the Federal Government.  The US District Court for the Central District of California, dismissed holding that federal reserve bank was NOT a federal agency.

"the court ruled that the Federal Reserve Banks are "independent, privately owned and locally controlled corporations", and there is not sufficient "federal government control over 'detailed physical performance' and 'day to day operation'" of the Federal Reserve Bank for it to be considered a federal agency: "

"Federal reserve banks are not federal instrumentalities for purposes of a Federal Tort Claims Act, but are independent, privately owned and locally controlled corporations in light of fact that direct supervision and control of each bank is exercised by board of directors, federal reserve banks, though heavily regulated, are locally controlled by their member banks, banks are listed neither as "wholly owned" government corporations nor as "mixed ownership" corporations; federal reserve banks receive no appropriated funds from Congress and the banks are empowered to sue and be sued in their own names. . . . "

http://www.save-a-patriot.org/files/view...

Answer 2

Gray Shadow's inevitable cut-and-paste answer is expected on any question about the Federal Reserve. It's just a very long-winded way of cherrypicking bits and pieces of truth, while selectively leaving out important information, in order to deceive. While some of his facts are (technically) correct, the information he presents is incomplete and deliberately misleading, and I won't waste any time picking it apart here as myself and others have done countless times before. [Get a real job, Shadow.]

Yes, it's privately owned by its shareholders, which are other private banks, some US and most European.

The Federal Reserve chairman is chosen by the President from a list of candidates prepared by a private committee appointed by the Fed's private shareholders.

While the GAO (Gov't Accountibility Office) is responsible for "auditing" the Fed, it is the Fed's private shareholders who determine the rules of the audit (i.e. what can be audited and what can't).

The Fed does issue reports and publishes data (such as M1, M2 and M3) the Fed decides what it wants to publish. This is illustrated presciently by the fact that the Fed decided to stop publishing M3 back in 2006... which the most important statistic for measuring total currency in circulation. I can imagine why they would rather keep this under their hats -- the last M3 data shows that the Fed was beginning to dump currency into the system at an exponential rate.

So there really is no gov't oversight, at least not where it really matters.

But don't just believe what people on Y!A say. Do your own research. (@ Rachelle: You'll have to look a little further than the Fed's own website!)

I will leave you with some quotations:

"The colonies would gladly have borne the little tax on tea and other matters had it not been that England took away from the colonies their money, which created unemployment and dissatisfaction. The inability of the colonists to get power to issue their own money permanently out of the hands of George III and the international bankers was the PRIME reason for the Revolutionary War."

- Benjamin Franklin's autobiography

"If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property, until their children will wake up homeless on the continent their fathers conquered."

-Thomas Jefferson

"Whoever controls the volume of money in any country is absolute master of all industry and commerce."

-James A. Garfield, President of the United States

"A great industrial Nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the Nation and all our activities, are in the hands of a few men. We have become to be one of the worst ruled, one of the most completely controlled and dominated Governments in the world - no longer a Government of free opinion, no longer a Government by conviction and vote of the majority, but a Government by the opinion and duress of small groups of dominate men . . . I have unwittingly ruined my country."

-President Woodrow Wilson (signed the Federal Reserve Act in 1913) (from National Economy and the Banking System, Senate Documents, Col. 3 No. 23)

Answer 3

The Federal Reserve Bank is a part of the Federal Government...it has nothing to do with Federal Express...Fed Ex is a privately owned shipping company.

For more info on The Federal Reserve Bank (or The Fed as it is commonly called) please go here:

http://www.federalreserve.gov/

Answer 4

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), 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 can be considered highly regulated private corporations. Member banks are required to buy shares in their branch. Each bank has one vote.  They can vote for 6 of their 9 board members, the other 3 are appointed by the Board of Governors.  Though the branches are called non-profit, the member banks get a standard 6% dividend on their shares. The remaining 'profit' is turned over to the Treasury at the end of the year.

For confirmation on this, check out how Hoovers classifies them:

http://www.hoovers.com/free/search/simpl...

The phrase "as Federal as Federal Express" is an oft-repeated from many anti-Fed conspiracy sites. Just a little research would disprove it for anyone interested.

Answer 5

Who owns the Federal Reserve?  Well, it has stockholders, like a corporation.  The stockholders are very large international banks.

The Federal Reserve was created by the Congress in 1913, but it is not part of the government.  If it were, it would have to be under the Executive, Legislative, or Judicial branches.  None of those three branches of the federal government are over the Federal Reserve.  It is an autonomous body, serving it's stockholders (the big international banks), and benefiting the Congress, by inflating the currency, thereby giving them greater revenues than they can obtain by taxation.

The personal income tax, which we also got in 1913, is essential to the Federal Reserve.  A large portion of your income tax money goes to pay the interest on the treasury bonds, purchased by the Federal Reserve System.  These bonds are paid for with federal reserve notes, which the Federal Reserve creates out of nothing!

So, now you know that the Federal Reserve is NOT part of the government.  It is the creation of the Congress, but it is not under any branch of the federal government.

You also know who owns the Federal Reserve (the large international banks).

And you know how we get inflation.  It is created by the Federal Reserve, for the benefit of our politicians.  And, the reason we and to have an income tax, to support the interest payments to the Federal Reserve System.

Answer 6

It is owned by the 16 federal reserve banks. The congress and government have no say in it's operations though the Fed must report to congress each year it has never been subject to an independent audit.

It represents only moneyed interests which maintain a boom/bust cycle that allows them to pump money out of the middle class and the poor so that they need not work for a living. It is a banker's welfare program.

If it were truly federal it's operating costs would appear in the GAO budget. Since it is a private enterprise that makes huge profits off the backs of the working class they do not.

Answer 7

It is owned by David Rockefeller and Nathan Rothschilde.  The President appoints Chairmn and Congress either agrees or disagrees with these selections.  Then the Fed who does what they feel necessary to either rob us or help us.  All power corrupts, what do you think they are doing?  They independently control our economy.