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"Most Americans believe that the Federal Reserve is part of the government. They are wrong. It is a privately held corporation owned by stockholders. The Federal Reserve System is owned by the largest banks in the United States. There are Class A,B, and C shareholders. The owner banks and their shares in the Federal Reserve are a secret. Why is this a secret? It is likely that the biggest banks in the country are the major shareholders. Does this explain why Citicorp, Bank of America and JP Morgan, despite being insolvent, are being propped up by Ben Bernanke and Timothy Geithner?"
Another snippet: "History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance".
James Madison, U.S. President
Much silliness. The entire Federal Reserve System is government-owned. The Board of Governors (aka The Fed) is a federal agency outright. Board members are appointed by Congress. People who work there are federal employees. The Federal Reserve Banks and their branches are federally-owned and jointly operated in the public interest by directors from both the public and private sectors under the supervision of the Board of Governors. People who work at the FRB's are not federal employees. They are employees of an individual FRB which is itself federally owned. The "stock" that member private banks must subscribe to in exchange for system membership is not "stock" in the traditional sense. No rights (except that to dividends) are attached to it. The stock may not be sold, traded, or pledged as security, and it is eventually redeemable only at par. The entire system is governed by federal statute and must report on its operations to Congress. Day to day policy and decision-making, however, are not subject to review by either the President or Congress. This is by Congressional design. As the result, the system may be considered as an independent part of the government.
but that the 12 regional Federal Reserve banks are not. The New York Fed, she said, "is not an agency of the federal government for any reason at all, not just FOIA."
Much silliness. The entire Federal Reserve System is government-owned. The Board of Governors (aka The Fed) is a federal agency outright. Board members are appointed by Congress. People who work there are federal employees. The Federal Reserve Banks and their branches are federally-owned and jointly operated in the public interest by directors from both the public and private sectors under the supervision of the Board of Governors. People who work at the FRB's are not federal employees. They are employees of an individual FRB which is itself federally owned. The "stock" that member private banks must subscribe to in exchange for system membership is not "stock" in the traditional sense. No rights (except that to dividends) are attached to it. The stock may not be sold, traded, or pledged as security, and it is eventually redeemable only at par. The entire system is governed by federal statute and must report on its operations to Congress. Day to day policy and decision-making, however, are not subject to review by either the President or Congress. This is by Congressional design. As the result, the system may be considered as an independent part of the government.
Then you better send a note to the Fed and tell them their website is wrong about their structure. Tell them to change all "independent" to "Federal".
"Most Americans believe that the Federal Reserve is part of the government. They are wrong. It is a privately held corporation owned by stockholders. The Federal Reserve System is owned by the largest banks in the United States. There are Class A,B, and C shareholders. The owner banks and their shares in the Federal Reserve are a secret. Why is this a secret? It is likely that the biggest banks in the country are the major shareholders. Does this explain why Citicorp, Bank of America and JP Morgan, despite being insolvent, are being propped up by Ben Bernanke and Timothy Geithner?"
There is no such thing as Class A, B, or C stock in a Federal Reserve Bank. There are two classes only: stock issued to member banks, and stock sold to the public. No stock has ever been (or at this point ever will be) sold to the public. The FRB shareholdings of member banks are not published. It doesn't matter. Every member bank has one vote regardless of how many shares it holds. The FRBNY as an example has more than 1,000 member banks. The votes of a handful of titans of the industry are lost among that number.
Note: There are Class A, B, and C directors of each FRB. Class A directors are elected by members to represent banks. Class B directors are elected by members to represent the non-banking public. Class C directors are appointed by the Board of Governors to represent the non-banking public.
Have they bowed down to the FOIA yet?
"but that the 12 regional Federal Reserve banks are not. The New York Fed, she said, "is not an agency of the federal government for any reason at all, not just FOIA."
Your Ms Beanstock is misinformed. She is correct that the Federal Reserve System is not covered by FOIA because it lies outside the definition of agencies covered as provided within FOIA itself. For the same reason, the Federal Reserve System is exempt from the Federal Tort Claims Act. It does not meet the requirements for coverage. Move however to the matter of exemption from state taxes. The Federal Reserve System IS exempt from state taxes because it is an agency of the federal government. One can play legal hopscotch all day...this law, that law, the other law...but that's not where the answer lies.
There is no such thing as Class A, B, or C stock in a Federal Reserve Bank. There are two classes only: stock issued to member banks, and stock sold to the public. No stock has ever been (or at this point ever will be) sold to the public. The FRB shareholdings of member banks are not published. It doesn't matter. Every member bank has one vote regardless of how many shares it holds. The FRBNY as an example has more than 1,000 member banks. The votes of a handful of titans of the industry are lost among that number.
Note: There are Class A, B, and C directors of each FRB. Class A directors are elected by members to represent banks. Class B directors are elected by members to represent the non-banking public. Class C directors are appointed by the Board of Governors to represent the non-banking public.
That word is "shareholders" not "stock" and there are 3 classes on the board A, B and C. Each class gets stock, hence they are shareholders.
Then you better send a note to the Fed and tell them their website is wrong about their structure. Tell them to change all "independent" to "Federal".
I'm quite sure that everything I have said will be found to be consistent with what is found on the Fed website. One might misconstrue one or the other, but that sort of problem is beyond my control...
That word is "shareholders" not "stock" and there are 3 classes on the board A, B and C. Each class gets stock, hence they are shareholders.
Each member bank is required as a term of memberhip to hold stock. There are no classes of stock. Hence, there are no classes of shareholder. The classes of director are distinguished by the means and purposes of their election or appointment. Nothing else. You have been led astray by profit-seeking mavens of Jekyl Island madness.
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