[quote=BillS78][quote=davelj][quote=investor]The federal reserve is a private company, whose ownership is mostly unknown but I suspect are the wealthiest 2 people on earth[/quote]
Really? I direct you to the the question titled: “Who Owns the Federal Reserve?” in the link below. It’s not that mysterious. The 12 regional Federal Reserve Banks that comprise the Federal Reserve System are “owned” by their respective member banks – that is, a bank has to own stock in its regional Federal Reserve Bank to be a “member bank.” And the System is an independent, non-profit entity operating within the government.[/quote]Wow, you really are an ignorant fool. The link that you’ve posted does not state what you’ve implied.
The 12 regional banks are not the owners of the federal reserve system. The twelve regional banks are each independent non profits that provide regional data for economic decisions but do not control the federal reserve system. The federal reserve system in all practical purposes is the NY fed bank, still owned by it’s founders, JP Morgan etc…, which you would know if you spent any time educating yourself.
Independent and operating within the government is really no different than Haliburtin in Iraq. Sure congress could strip the fed of its powers but the feds assets would still be owned by the corporations(banks) that own the fed.
You really need to educate yourself. Even well respected pro fed publications like the economist and the Harvard business review limit their discussion of the regional banks’ impact on the fed system to the NY fed bank. It’s no coincidence, that corporation is owned and operated by the same group (JP Morgan, Goldman, Citi…) who founded the fed res system.
I wouldn’t call the fed a conspiracy it’s just good business by the big NY banks. It’s the ignorance of people like you who allowed the fed and it’s owners to appropriate much of the countries’ wealth.[/quote]
“You really need to educate yourself.” OK, Professor. Will do! Before I get to that however…
Right, the 12 regional Fed Banks don’t comprise the entire system – and thus don’t “own” the system. You have to add in the Board of Governors which, via the FOMC, sets monetary policy. The ownership of the 12 regional Fed Banks is explained below. The stock of the New York Fed, specifically (since you brought it up), is owned almost entirely by the largest handful of banks in the country. There is a limit to how much New York Fed stock a non-bank can own – I believe it’s $25,000 (di minimis). So, when you say that the NY Fed Bank is “still owned by its founders JP Morgan, etc.” that’s somewhat misleading. A large chunk of the NY Fed’s stock is owned by JP Morgan Chase by virtue of JPM Chase’s size – thus the SHAREHOLDERS of JPM Chase indirectly own a big chunk of the NY Fed’s stock. Likewise, when you say, “It’s no coincidence, that corporation is owned and operated by the same group (JP Morgan, Goldman, Citi…) who founded the fed res system,” all you’re saying is that the largest banks in the country (owned by disperse shareholders) own the largest amount of stock in the NY Fed… which doesn’t contradict anything from my previous posts.
“Wow, you really are an ignorant fool.” Most folks wait a few posts to throw out the ad hominems. I’ll assume you’re just impatient.
Alright, Oh Great Mind of Banking and Finance, please wow us with more of your Pedantic Wisdom. [Hey, wait a minute… aren’t you one of those Geniuses of Investing and Finance that bought a house near the top? Yes, I believe you are… one more reason to pay very very close attention to your proclamations.]
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From the link provided above:
How is the Federal Reserve System structured?
The Federal Reserve System has a structure designed by Congress to give it a broad perspective on the economy and on economic activity in all parts of the nation. It is a federal system, composed of a central, governmental agency–the Board of Governors–in Washington, D.C., and twelve regional Federal Reserve Banks, located in major cities throughout the nation. These components share responsibility for supervising and regulating certain financial institutions and activities; for providing banking services to depository institutions and to the federal government; and for ensuring that consumers receive adequate information and fair treatment in their business with the banking system.
A major component of the System is the Federal Open Market Committee (FOMC), which is made up of the members of the Board of Governors, the president of the Federal Reserve Bank of New York, and presidents of four other Federal Reserve Banks, who serve on a rotating basis. The FOMC oversees open market operations, which is the main tool used by the Federal Reserve to influence money market conditions and the growth of money and credit.
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.
