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.

(So how does a non profit pay 6% a year I wonder?)

Meanwhile, the FED still thinks baloney is the better part of valor.

I’m just another dumb taxpayer about to have the rest of my net worth wiped out, but I’d like to know why Goldman Sachs were ‘in the room’ on the AIG deal. I’m suspicious of the fact that I don’t see mention of the Goldman/Fed connection in any media apart from in Bill Bonner’s exceptional articles. Is there a politician of standing out there who isn’t toeing the line, keeping his head down or too worried about the status of his Swiss bank account, who could ask a few honest questions on our behalf?

And like any moral ‘system,’ it rarely gives the capitalists what they hope for…or what they want. It gives them what they deserve. And right now, it’s giving it to them good and hard.
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Great stuff. Bonner is gradually becoming one of my favorite people.

Like a bloodied warrior,
laying broken and torn.

Like a dying soldier, hopeless and forlorn.

But the blood, it be green,
the color of money.

And the soldier is an economy,
and it is anything but funny.

Broken are it’s people and shattered are their dreams.

Thanks to the ultra rich and their full proof schemes.

It is a tragedy with more pain to come.

Finance will be Hell, and their wills will be done.

http://www.voicesnet.org/allpoemsoneauthor.aspx?memberid=982900010

never waste a good crisis – there is rhyme and reason to the destruction of the american economy and the first citizen of kenya will take full advantage of it.