OWNERSHIP OF THE FEDERAL RESERVE. Who Owns it

[Infidel]

OWNERSHIP OF THE FEDERAL RESERVE


Most Americans, if they know anything at all about the Federal Reserve, believe it is an agency of the United States Government. This article charts the true nature of the "National Bank."
Chart 1

Source: ** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1976

Source: Federal Reserve Directors: A Study of Corporate and Banking Influence. Staff Report,Committee on Banking,Currency and Housing, House of Representatives, 94th Congress, 2nd Session, August 1976.

Chart 1 reveals the linear connection between the Rothschilds and the Bank of England, and the London banking houses which ultimately control the Federal Reserve Banks through their stockholdings of bank stock and their subsidiary firms in New York. The two principal Rothschild representatives in New York, J. P. Morgan Co., and Kuhn, Loeb & Co. were the firms which set up the Jekyll Island Conference at which the Federal Reserve Act was drafted, who directed the subsequent successful campaign to have the plan enacted into law by Congress, and who purchased the controlling amounts of stock in the Federal Reserve Bank of New York in 1914. These firms had their principal officers appointed to the Federal Reserve Board of Governors and the Federal Advisory Council in 1914. In 1914 a few families (blood or business related) owning controlling stock in existing banks (such as in New York City) caused those banks to purchase controlling shares in the Federal Reserve regional banks. Examination of the charts and text in the House Banking Committee Staff Report of August, 1976 and the current stockholders list of the 12 regional Federal Reserve Banks show this same family control.

N.M. Rothschild , London - Bank of England
______________________________________
| |
| J. Henry Schroder
| Banking | Corp.
| |
Brown, Shipley - Morgan Grenfell - Lazard - |
& Company & Company Brothers |
| | | |
--------------------| -------| | |
| | | | | |
Alex Brown - Brown Bros. - Lord Mantagu - Morgan et Cie -- Lazard ---|
& Son | Harriman Norman | Paris Bros |
| | / | N.Y. |
| | | | | |
| Governor, Bank | J.P. Morgan Co -- Lazard ---|
| of England / N.Y. Morgan Freres |
| 1924-1938 / Guaranty Co. Paris |
| / Morgan Stanley Co. | /
| / | \Schroder Bank
| / | Hamburg/Berlin
| / Drexel & Company /
| / Philadelphia /
| / /
| / Lord Airlie
| / /
| / M. M. Warburg Chmn J. Henry Schroder
| | Hamburg --------- marr. Virginia F. Ryan
| | | grand-daughter of Otto
| | | Kahn of Kuhn Loeb Co.
| | |
| | |
Lehman Brothers N.Y -------------- Kuhn Loeb Co. N. Y.
| | --------------------------
| | | |
| | | |
Lehman Brothers - Mont. Alabama Solomon Loeb Abraham Kuhn
| | __|______________________|_________
Lehman-Stern, New Orleans Jacob Schiff/Theresa Loeb Nina Loeb/Paul Warburg
- ------------------------- | | |
| | Mortimer Schiff James Paul Warburg
_____________|_______________/ |
| | | | |
Mayer Lehman | Emmanuel Lehman \
| | | \
Herbert Lehman Irving Lehman \
| | | \
Arthur Lehman \ Phillip Lehman John Schiff/Edith Brevoort Baker
/ | Present Chairman Lehman Bros
/ Robert Owen Lehman Kuhn Loeb - Granddaughter of
/ | George F. Baker
| / |
| / |
| / Lehman Bros Kuhn Loeb (1980)
| / |
| / Thomas Fortune Ryan
| | |
| | |
Federal Reserve Bank Of New York |
|||||||| |
______National City Bank N. Y. |
| | |
| National Bank of Commerce N.Y ---|
| | \
| Hanover National Bank N.Y. \
| | \
| Chase National Bank N.Y. \
| |
| |
Shareholders - National City Bank - N.Y. |
- ----------------------------------------- |
| /
James Stillman /
Elsie m. William Rockefeller /
Isabel m. Percy Rockefeller /
William Rockefeller Shareholders - National Bank of Commerce N. Y.
J. P. Morgan -----------------------------------------------
M.T. Pyne Equitable Life - J.P. Morgan
Percy Pyne Mutual Life - J.P. Morgan
J.W. Sterling H.P. Davison - J. P. Morgan
NY Trust/NY Edison Mary W. Harriman
Shearman & Sterling A.D. Jiullard - North British Merc. Insurance
| Jacob Schiff
| Thomas F. Ryan
| Paul Warburg
| Levi P. Morton - Guaranty Trust - J. P. Morgan
|
|
Shareholders - First National Bank of N.Y.
- -------------------------------------------
J.P. Morgan
George F. Baker
George F. Baker Jr.
Edith Brevoort Baker
US Congress - 1946-64
|
|
|
|
|
Shareholders - Hanover National Bank N.Y.
- ------------------------------------------
James Stillman
William Rockefeller
|
|
|
|
|
Shareholders - Chase National Bank N.Y.
- ---------------------------------------
George F. Baker


Chart 2

Source: ** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1983

The J. Henry Schroder Banking Company chart encompasses the entire history of the twentieth century, embracing as it does the program (Belgium Relief Commission) which provisioned Germany from 1915-1918 and dissuaded Germany from seeking peace in 1916; financing Hitler in 1933 so as to make a Second World War possible; backing the Presidential campaign of Herbert Hoover ; and even at the present time, having two of its major executives of its subsidiary firm, Bechtel Corporation serving as Secretary of Defense and Secretary of State in the Reagan Administration.

The head of the Bank of England since 1973, Sir Gordon Richardson, Governor of the Bank of England (controlled by the House of Rothschild) was chairman of J. Henry Schroder Wagg and Company of London from 1963-72, and director of J. Henry Schroder, New York and Schroder Banking Corporation, New York, as well as Lloyd's Bank of London, and Rolls Royce. He maintains a residence on Sutton Place in New York City, and as head of "The London Connection," can be said to be the single most influential banker in the world.

J. Henry Schroder
-----------------
|
|
|
Baron Rudolph Von Schroder
Hamburg - 1858 - 1934
|
|
|
Baron Bruno Von Schroder
Hamburg - 1867 - 1940
F. C. Tiarks |
1874-1952 |
| |
marr. Emma Franziska |
(Hamburg) Helmut B. Schroder
J. Henry Schroder 1902 |
Dir. Bank of England |
Dir. Anglo-Iranian |
Oil Company J. Henry Schroder Banking Company N.Y.
|
|
J. Henry Schroder Trust Company N.Y.
|
|
|
___________________|____________________
| |
Allen Dulles John Foster Dulles
Sullivan & Cromwell Sullivan & Cromwell
Director - CIA U. S. Secretary of State
Rockefeller Foundation
Prentiss Gray
------------
Belgian Relief Comm. Lord Airlie
Chief Marine Transportation -----------
US Food Administration WW I Chairman; Virgina Fortune
Manati Sugar Co. American & Ryan daughter of Otto Kahn
British Continental Corp. of Kuhn,Loeb Co.
| |
| |
M. E. Rionda |
------------ |
Pres. Cuba Cane Sugar Co. |
Manati Sugar Co. many other |
sugar companies. _______|
| |
| |
G. A. Zabriskie |
--------------- | Emile Francoui
Chmn U.S. Sugar Equalization | --------------
Board 1917-18; Pres Empire | Belgian Relief Comm. Kai
Biscuit Co., Columbia Baking | Ping Coal Mines, Tientsin
Co. , Southern Baking Co. | Railroad,Congo Copper, La
| Banque Nationale de Belgique
Suite 2000 42 Broadway | N. Y |
__________________________|_______________________ ____|
| | |
| | |
Edgar Richard Julius H. Barnes Herbert Hoover
------------- ---------------- --------------
Belgium Relief Comm Belgium Relief Comm Chmn Belgium Relief Com
Amer Relief Comm Pres Grain Corp. U.S. Food Admin
U.S. Food Admin U.S. Food Admin Sec of Commerce 1924-28
1918-24, Hazeltine Corp. 1917-18, C.B Pitney Kaiping Coal Mines
| Bowes Corp, Manati Congo Copper, President
| Sugar Corp. U.S. 1928-32
|
|
|
John Lowery Simpson
- -------------------
Sacramento,Calif Belgium Relief |
Comm. U. S. Food Administration Baron Kurt Von Schroder
Prentiss Gray Co. J. Henry Schroder -----------------------
Trust, Schroder-Rockefeller, Chmn Schroder Banking Corp. J.H. Stein
Fin Comm, Bechtel International Bankhaus (Hitler's personal bank
Co. Bechtel Co. (Casper Weinberger account) served on board of all
Sec of Defense, George P. Schultz German subsidiaries of ITT . Bank
Sec of State (Reagan Admin). for International Settlements,
| SS Senior Group Leader,Himmler's
| Circle of Friends (Nazi Fund),
| Deutsche Reichsbank,president
|
|
Schroder-Rockefeller & Co. , N.Y.
- ---------------------------------
Avery Rockefeller, J. Henry Schroder
Banking Corp., Bechtel Co., Bechtel
International Co. , Canadian Bechtel
Company. |
|
|
|
Gordon Richardson
-----------------
Governor, Bank of England
1973-PRESENT C.B. of J. Henry Schroder N.Y.
Schroder Banking Co., New York, Lloyds Bank
Rolls Royce


Chart 3

Source: ** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1976

The David Rockefeller chart shows the link between the Federal Reserve Bank of New York, Standard Oil of Indiana, General Motors and Allied Chemical Corportion (Eugene Meyer family) and Equitable Life (J. P. Morgan).

DAVID ROCKEFELLER
- ----------------------------
Chairman of the Board
Chase Manhattan Corp
|
|
______|_______________________
Chase Manhattan Corp. |
Officer & Director Interlocks|---------------------
------|----------------------- |
| |
Private Investment Co. for America Allied Chemicals Corp.
| |
Firestone Tire & Rubber Company General Motors
| |
Orion Multinational Services Ltd. Rockefeller Family & Associates
| |
ASARCO. Inc Chrysler Corp.
| |
Southern Peru Copper Corp. Intl' Basic Economy Corp.
| |
Industrial Minerva Mexico S.A. R.H. Macy & Co.
| |
Continental Corp. Selected Risk Investments S.A.
| |
Honeywell Inc. Omega Fund, Inc.
| |
Northwest Airlines, Inc. Squibb Corporation
| |
Northwestern Bell Telephone Co. Olin Foundation
| |
Minnesota Mining & Mfg Co (3M) Mutual Benefit Life Ins. Co. of NJ
| |
American Express Co. AT & T
| |
Hewlett Packard Pacific Northwestern Bell Co.
| |
FMC Corporation BeachviLime Ltd.
| |
Utah Intl' Inc. Eveleth Expansion Company
| |
Exxon Corporation Fidelity Union Bancorporation
| |
International Nickel/Canada Cypress Woods Corporation
| |
Federated Capital Corporation Intl' Minerals & Chemical Corp.
| |
Equitable Life Assurance Soc U.S. Burlington Industries
| |
Federated Dept Stores Wachovia Corporation
| |
General Electric Jefferson Pilot Corporation
| |
Scott Paper Co. R. J. Reynolds Industries Inc.
| |
American Petroleum Institute United States Steel Corp.
| |
Richardson Merril Inc. Metropolitan Life Insurance Co.
| |
May Department Stores Co. Norton-Simon Inc.
| |
Sperry Rand Corporation Stone-Webster Inc.
| |
San Salvador Development Company Standard Oil of Indiana


Chart 4

** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1976

This chart shows the interlocks between the Federal Reserve Bank of New York J. Henry Schroder Banking Corp., J. Henry Schroder Trust Co., Rockefeller Center, Inc., Equitable Life Assurance Society ( J.P. Morgan), and the Federal Reserve Bank of Boston.

Alan Pifer, President
Carnegie Corporation
of New York
- ----------------------
|
|
- ----------------------
Carnegie Corporation
Trustee Interlocks --------------------------
---------------------- |
| |
Rockefeller Center, Inc J. Henry Schroder Trust Company
| |
The Cabot Corporation Paul Revere Investors, Inc.
| |
Federal Reserve Bank of Boston Qualpeco, Inc.
|
Owens Corning Fiberglas
|
New England Telephone Co.
|
Fisher Scientific Company
|
Mellon National Corporation
|
Equitable Life Assurance Society
|
Twentieth Century Fox Corporation
|
J. Henry Schroder Banking Corporation


Chart 5

Source: ** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1976

This chart shows the link between the Federal Reserve Bank of New York, Brown Brothers Harriman,Sun Life Assurance Co. (N.M. Rothschild and Sons), and the Rockefeller Foundation.

Maurice F. Granville
Chairman of The Board
Texaco Incorporated
- ----------------------
|
|
Texaco Officer & Director Interlocks ---------- Liggett & Myers, Inc.
- ------------------------------------ |
| |
| |
L Arabian American Oil Company St John d'el Ray Mining Co. Ltd.
O | |
N Brown Brothers Harriman & Co. National Steel Corporation
D | |
O Brown Harriman & Intl' Banks Ltd. Massey-Ferguson Ltd.
N | |
American Express Mutual Life Insurance Co.
| |
N. American Express Intl' Banking Corp. Mass Mutual Income Investors Inc.
M. | |
Anaconda United Services Life Ins. Co.
R | |
O Rockefeller Foundation Fairchild Industries
T | |
H Owens-Corning Fiberglas Blount, Inc.
S | |
C National City Bank (Cleveland) William Wrigley Jr. Co
H | |
I Sun Life Assurance Co. National Blvd. Bank of Chicago
L | |
D General Reinsurance Lykes Youngstown Corporation
| |
General Electric (NBC) Inmount Corporation


** Source: Federal Reserve Directors: A Study of Corporate and Banking Influence. Staff Report,Committee on Banking,Currency and Housing, House of Representatives, 94th Congress, 2nd Session, August 1976.

[goldissima]

let me specify the link, because it just is a great site :-)
http://www.lawfulpath.com/ref/federal_reserve.shtml

[BarnacleBob]

"No body of men can be said to authorize a man to act as their agent, to the injury of a third person, unless they do it in so open and authentic a manner as to make themselves personally responsible for his acts. None of the voters in this country appoint their political agents in any open, authentic manner, or in any manner to make themselves responsible for their acts. Therefore these pretended agents cannot legitimately claim to be really agents. Somebody must be responsible for the acts of these pretended agents; and if they cannot show any open and authentic credentials from their principals, they cannot, in law or reason, be said to have any principals. The maxim applies here, that what does not appear, does not exist. If they can show no principals, they have none."

--Lysander Spooner

http://www.lysanderspooner.org/bib_poll.htm

[Eldorado]

That list of the owners of the federal reserve (assuming that the author did not make it up) seems a bit dated. Anybody care to speculate who are today's owners? Are they really the owners or just the controllers? European Central Banks seem to be nationalized, is it true or the old banking families still control them?

[Dominus]

That list of the owners of the federal reserve (assuming that the author did not make it up) seems a bit dated. Anybody care to speculate who are today's owners? Are they really the owners or just the controllers? European Central Banks seem to be nationalized, is it true or the old banking families still control them?

From: http://www.ecb.eu/ecb/orga/capital/html/index.en.html

[Dominus]

The ownership of the bank of italy:
The first 2 intesa and s.paolo have close a big(for italy) merger and now they have a 45%.
Reading the article of this italian professor he find that a 10% of the share ownership is unknow....

http://www.dm.unito.it/personalpages/scienza/documenti/Proprietari-di-Bankitalia-2005.htm
Principali azionisti della Banca d'Italia


Gruppo Intesa --- 26,81%
Gruppo San Paolo IMI --- 17,44%
Gruppo Capitalia --- 11,15%
Gruppo Unicredito Italiano --- 10,97%
Gruppo Assicurazioni Generali --- 6,33%
INPS --- 5%
Banca Carige --- 3,96%
Banca Nazionale del Lavoro --- 2,83%
Banca Monte dei Paschi di Siena ---2,50%
Cassa di Risparmio di Firenze --- 1,85%
RAS-Riunione Adriatica di Sicurtà --- 1,33%
Banca Popolare Italina già di Lodi --- 1,23%

Cassa di Risparmio di Asti --- 0,93%
Banca delle Marche --- 0,82%
Cassa di Risparmio di Ferrara --- 0,32%
Cassa di Risparmio di Alessandria --- 0,29%
Cassa di Risparmio di Ravena --- 0,26%
Cassa di Risparmio di San Miniato --- 0,22%
Cassa di Risparmio di Forlì --- 0,20%
Cassa di Risparmio di Bolzano --- 0,13%
Cassa di Risparmio di Rimini --- 0,13%
Cassa di Risparmio di Cento --- 0,10%

[eat_beef]

What happened Zhuker, finally came around to the dark side?:ARMS1:

[shrpblnd]

I thought these conspiracy theories about ownership of the FED had been thoroughly debunked already.

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. All other "profits" generated by the FED are returned to the Federal Government.

As for the suggestion that stock ownership of the Federal Reserve banks by their private member banks confers control of U.S. monetary policy to the bankers, the ownership simply does not do so. Six of the nine directors of the Federal Reserve bank must not be bankers or stockholders of the member banks. Member banks elect six of the Reserve bank's directors, only three of whom can be bankers or bank stockholders. The Board of Governors of the Federal Reserve System appoints the other three directors, all of whom must not be bankers or stockholders. In turn, the President of the United States appoints and Congress confirms the seven members of the Federal Reserve Board of Governors, whose terms are staggered and run for 14 years. Only the Chairman is appointed every four years.

By legal structure, then, the private bankers do not determine the Federal Reserve's monetary policy. If they do determine it by virtue of their influence with the FOMC members (gained from deserved respect or feared financial clout), that is a problem unrelated to the fact that member banks own the Federal Reserve banks. If the U.S. central bank were wholly owned by the Federal Government, some private bankers still would have more influence on policy than other bankers and the great majority of Americans.

There are no "foreign" banks that are members of the FED. Virtually all member banks are publically traded corporations whose stock is widely held by individuals, pension plans, insurance companies, and mutual funds. Member banks, regardless of how much stock they own, only get one vote for a director.

[Large Sarge]

I thought these conspiracy theories about ownership of the FED had been thoroughly debunked already.

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. All other "profits" generated by the FED are returned to the Federal Government.

As for the suggestion that stock ownership of the Federal Reserve banks by their private member banks confers control of U.S. monetary policy to the bankers, the ownership simply does not do so. Six of the nine directors of the Federal Reserve bank must not be bankers or stockholders of the member banks. Member banks elect six of the Reserve bank's directors, only three of whom can be bankers or bank stockholders. The Board of Governors of the Federal Reserve System appoints the other three directors, all of whom must not be bankers or stockholders. In turn, the President of the United States appoints and Congress confirms the seven members of the Federal Reserve Board of Governors, whose terms are staggered and run for 14 years. Only the Chairman is appointed every four years.

By legal structure, then, the private bankers do not determine the Federal Reserve's monetary policy. If they do determine it by virtue of their influence with the FOMC members (gained from deserved respect or feared financial clout), that is a problem unrelated to the fact that member banks own the Federal Reserve banks. If the U.S. central bank were wholly owned by the Federal Government, some private bankers still would have more influence on policy than other bankers and the great majority of Americans.

There are no "foreign" banks that are members of the FED. Virtually all member banks are publically traded corporations whose stock is widely held by individuals, pension plans, insurance companies, and mutual funds. Member banks, regardless of how much stock they own, only get one vote for a director.


Wow,

you must be new here.

Virtually everything you posted is wrong, almost dead opposite of reality.

Keep taking those blue pills.

:bull-smile:

[shrpblnd]

Wow,

you must be new here.

Virtually everything you posted is wrong, almost dead opposite of reality.

Keep taking those blue pills.

Care to elaborate on a single point that is wrong? Please include primary sources as your evidence, instead of a link back to another website, such as lawfulpath.com that is full of conspiracy theories as well. That does not count as evidence.

Also the reported "sources" listed above such as "Federal Reserve Directors: A Study of Corporate and Banking Influence -- Published 1976" are simply made up references, and certainly don't prove the Rothschilds "own" the FED.

[shrpblnd]

Last I checked jury deliberations, decisions, and actions were also held in secret, even for death penalty cases.

The fact that audits of the FED do not include these deliberations has nothing to do with who "owns" the FED.

For the record the FOMC keeps minutes of their meetings, and releases them six weeks later.

[bigjon]

I thought these conspiracy theories about ownership of the FED had been thoroughly debunked already.

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. All other "profits" generated by the FED are returned to the Federal Government.

As for the suggestion that stock ownership of the Federal Reserve banks by their private member banks confers control of U.S. monetary policy to the bankers, the ownership simply does not do so. Six of the nine directors of the Federal Reserve bank must not be bankers or stockholders of the member banks. Member banks elect six of the Reserve bank's directors, only three of whom can be bankers or bank stockholders. The Board of Governors of the Federal Reserve System appoints the other three directors, all of whom must not be bankers or stockholders. In turn, the President of the United States appoints and Congress confirms the seven members of the Federal Reserve Board of Governors, whose terms are staggered and run for 14 years. Only the Chairman is appointed every four years.

By legal structure, then, the private bankers do not determine the Federal Reserve's monetary policy. If they do determine it by virtue of their influence with the FOMC members (gained from deserved respect or feared financial clout), that is a problem unrelated to the fact that member banks own the Federal Reserve banks. If the U.S. central bank were wholly owned by the Federal Government, some private bankers still would have more influence on policy than other bankers and the great majority of Americans.

There are no "foreign" banks that are members of the FED. Virtually all member banks are publically traded corporations whose stock is widely held by individuals, pension plans, insurance companies, and mutual funds. Member banks, regardless of how much stock they own, only get one vote for a director.

You must have a college edgamacation.

The essential thing that is wrong with our banking system is allowing some people to make money out of thin air and charge people as if they had given them something of value.

The risk is all on the borrower's side of the equation and the banker has NO risk.

[The Argent Dragon]

For those who need FED #101 education, please purchase this book - read it - and then post your thoughts for a decent discussion.

http://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/0912986212

As for the rest, don't bash a guy for being ill-informed. Lot's of us here didn't have a 'clue' either just a few years ago.

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[shrpblnd]

For those who need FED #101 education, please purchase this book - read it - and then post your thoughts for a decent discussion.

http://www.amazon.com/Creature-Jekyll-Island-Federal-Reserve/dp/0912986212

As for the rest, don't bash a guy for being ill-informed. Lot's of us here didn't have a 'clue' either just a few years ago.


Edward Griffin, author of the book, actually agrees with me regarding ownership of the Federal Reserve. Maybe you should try actually READING the book. I have added bold for emphasis. Hopefully this settles the issue of ownership and control once and for all.


Here's an interesting question, Who owns the Federal Reserve System? You hear a lot of discussion on this particularly on talk radio nowadays. When the subject of money comes up somebody calls in and says, "Did you know the Federal Reserve is completely owned by the private banks? It's a private corporation. What we need to do," they say "is abolish the Fed and turn it over to the government so they can operate it for the benefit of the people." Some of you are laughing and I'm sure there are some people here thinking what's wrong with that so let's analyze it.

First of all it is a half-truth and it is a non-solution. Let's deal with the half-truth first. It is true that the Federal Reserve System is not an agency of the federal government in any shape or form. As I mentioned before, it is a corporation that is chartered by Congress and like all corporations it has stock certificates and those stock certificates in this case are held by the banks within the Federal Reserve System. Every bank that's in the system is an owner of the Federal Reserve--remember this is a cartel. They own it in one sense of the word, in the sense that they have stock certificates but up to that point it looks as though it has all the attributes of a privately held corporation. But that's as far as it goes because those stock certificates do not carry with them any of the attributes of private ownership. For example, the holders of these certificates cannot sell them. If you can't sell something then you don't really own it, that's one of the tests of ownership, your ability to dispose of it. You cannot sell it. Furthermore the larger banks put up more money than the smaller banks, it's a ratio to their assets, so the larger banks have more stock certificates in the system than the small ones and yet regardless of the number that they hold, every bank has just one vote. There's another violation of the principle of private ownership. Furthermore that vote doesn't buy them anything. They can't vote for anything of substance; they cannot vote for their national management which is the most important thing, isn't it? The board of directors and chairman of the Federal Reserve System are appointed by the President, they're not elected by the banks that are part of the system, the President does that.

All that the local banks can vote for with their vote are the boards of directors of the regional banks, so-called, which are subdivisions within the system. They can't even vote for the leadership in their local subdivisions because the chairman and the vice-chairman of those 12 regional banks are appointed by the national board. They can vote for their officers at those regional banks, the president, the vice-president and treasurer but guess what? Those are subject to veto by the national board. Get the picture? All power has always been at the top of this system. The only thing that the charter allows them to vote for, those boards of directors, of substance is to set the interest rates within their regions. But this should come as no surprise to anybody that even that is subject to veto by the national board. You see this concept of diffusion of power throughout the regions of the US is a scam. There is no power at the local level. There is nothing that these boards of directors who are voted in by the banks who hold the certificates can do of substance. All they're allowed to do really is play golf.

It is not a privately held corporation in the traditional sense of the word. This idea of diffusion of power over the 12 regional banks was just a necessity of 1913 to sell the concept to the American people. If it hadn't been for this aversion against the concentration of power in New York they would never have had these 12 regions; it's just a leftover from the necessity to sell it and doesn't serve any function whatsoever. So it's not a corporation in the traditional sense of the word, it's not a government agency in the traditional sense of the word so what is it? It's a hybrid, part corporation and part government, part private, part government. In fact, it is exactly what you would expect it to be considering the fact that it is a partnership between the private banking cartel and the government. It's a unique structure which was designed to perform a unique function.

[bigjon]

it seems to me bigjon, that obscene profits beyond comprehension of most mortals are but the tip of the iceberg...the rabbit hole could run much, much deeper and the consequences even more dire...

if an unbridled, self-serving power places its death grip around the credit creation capabilities of a nation they can bring that country to its knees and command their bidding...or else...

they could indeed demand that nation fight its wars or face certain economic implosion...

they could erode the very basic principles of freedom through coercion of its politicians...

in essence, they would own that nation...

Gee, why does that sound just like present day America, the good old USSA.

[softserve320]

Who owns it is an interesting question but really not as interesting as why was it established and what did 'we' need the Fed to do that the Treasury could not? :bear_cool:


Robert Anton Wilson quips about money. :rose:


http://www.youtube.com/watch?v=LXIRF_0P6XU

[Goldhedge]

and let's not forget these famous quotes:

"Permit me to issue and control the money of a nation, and I care not who makes its laws." Amschel Mayer Rothschild

Started the first Central Bank of England (FED was modeled after it)

"I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire, and I control the British money supply." Nathan Mayer Rothschild

Then one also must consider that our very own president is elected for a minimum of 4 years and a maximum of 8 years, however the Fed chairman is 'appointed' (not elected) for a minimum of 5 years and so far no limit on how long. For example: Greenspan was 'appointed for 25 years'.

In that span of time the Euro was born 25 years ago (coincidence?) our debt became the highest ever, and the stock market went ballistic. It now takes two incomes to raise a family where it used to take one.

Why should the US pay a private corporation to print it's own money? Remember, the FED prints only the money the government requests. It DOES NOT print the INTEREST it charges the government. Where does the interest come from? The debt, by design, will never be paid off. It's a mathematical impossibility.

Since the 1913 Federal Reserve Act, this nation's purchasing power has declined dramatically.

Every president that opposed a Central Bank has either been assassinated (Lincoln, Garfield, McKinley & Kennedy) or attempted (Andrew Jackson) Coincidence? If I remember correctly, the most prosperous US economy was during AJ's watch when the 2nd Central Bank charter was not renewed. Just read his State of the Union addresses re bankers - he must have been a conspiracy nut too....

[shrpblnd]

and let's not forget these famous quotes:

"Permit me to issue and control the money of a nation, and I care not who makes its laws." Amschel Mayer Rothschild

Started the first Central Bank of England (FED was modeled after it)

Then one also must consider that our very own president is elected for a minimum of 4 years and a maximum of 8 years, however the Fed chairman is 'appointed' (not elected) for a minimum of 5 years and so far no limit on how long. For example: Greenspan was 'appointed for 25 years'.

Why should the US pay a private corporation to print it's own money? Remember, the FED prints only the money the government requests.

For someone with over 3,000 posts, your ignorance regarding the FED is astounding. Amshel Mayer Rothschild did NOT start the first Central Bank of England. William Paterson, in 1694, founded the Bank of England, to act as the English government's banker.

A Federal Reserve term is 14 years and members may serve a single term only, although they can serve a partial term and then a full term.

The Chairman however is appointed every four years. Alan Greenspan served 5 terms, under four different Presidents. Four times five is 20, not 25. Technically, Greenspan did not finish his last term, and only served 18 1/2 years.

This was detailed in many media sources including here:

http://www.msnbc.msn.com/id/5263624

The maximum a Chair can serve is just under 28 years, as they must be a board member to be nominated as Chairman, and that assumes thay get a nearly full partial term, and then a full term. Appointments to the board and the Chair are often made simultaneously, so the Chair does not have to be a board member prior to his appointment as Chair. Realistically, 20 years is about the maximum achievable, as board members never retire so early in their respective terms.

Finally, I thought we just established that the Federal Reserve was not a privately held corporation in the traditional sense of the word. It is a non-profit, independent entity within the Federal Government.

The only thing you have correct is that the FED prints only the money the government requests. The government's reckless spending is the villian here, NOT the Federal Reserve.

If you want to maintain the value of the dollar, try writing your congressman and tell them pull our troops out of Iraq, and stop wasting BILLIONS of tax dollars that must be monetized by the Federal Reserve.

[Goldhedge]

You are correct. I misstated the facts. He is actually appointed for 4 year terms and for some reason I flipped it to 5 and 5 years...

The problem isn't the gooberment. The problem is the history of the FED and how it came into being. Read the Creature for the facts. I read it probably 10 years ago, so I don't want to go on memory. :aetsch:

Why do we need a Federal Reserve (a credit card in reality) anyway?

When you consider the value of the dollar today compared to 100 years ago, you'd think that it would have gained in value. Any business would want to INCREASE the value of an asset instead of the reverse. There must be a reason for such poor performance for supposedly the richest nation on the planet. Debt is NOT wealth.

And where does the interest payment come from?

[shrpblnd]

The problem isn't the gooberment. The problem is the history of the FED and how it came into being. Read the Creature for the facts. I read it probably 10 years ago, so I don't want to go on memory. :aetsch:

Why do we need a Federal Reserve (a credit card in reality) anyway?

When you consider the value of the dollar today compared to 100 years ago, you'd think that it would have gained in value. Any business would want to INCREASE the value of an asset instead of the reverse. There must be a reason for such poor performance for supposedly the richest nation on the planet. Debt is NOT wealth.


Wow. You really need to go back and read the book again then. Griffen, who is obviously no fan of the FED, quite clearly states the problem IS the government. The very reason they created the FED was to be able to borrow vast amounts of money, without any real intention of every paying it back.

Is it a solution to abolish the Fed and turn it over to the Congress to run on behalf of the people? At least we get the dirty bankers out of the loop, right? And that makes everybody feel good...well, we're not paying interest to the banks anymore but what happens? Now the government is running the whole thing by itself. Now that solves a lot of problems doesn't it? Now they're creating money out of nothing all by themselves. Well, they've always been able to do that. The government doesn't want to do that, that's the reason they got into this partnership in the beginning because when the government creates money directly it's too obvious. That's why the kings and princes of Europe couldn't do it. They printed money, that's how they did it generally, but when the government prints money you can see all this money around that says the government on there and you know exactly what's going on. They like to work through the banking system because when it appears in your checking account it doesn't say government on it and you don't know how it got there.

The government really doesn't want to do it that way but even if they did it wouldn't make much difference because it's not important who owns the Federal Reserve System. The important thing is what it does and as long as it a central bank, which means as long as it has the power and the mandate to create money out of nothing it will create money out of nothing. That's what it will do and it will continue to do exactly the same thing and be run no doubt by the same people as it is now and we would not have solved anything. We must keep in mind that in Europe all of the central banks there are in fact direct agencies of their respective governments; they are not hybrid organizations at all like ours. And yet in those countries they do exactly the same as the Federal Reserve System has been doing here. Just turning it over to the government is a non-solution.


Furthermore, during WWII the Federal Reserve was completely subject to the Treasury Department, and monetized the enormous war debt while holding interest rates at 2 1/2%. In 1951, the Treasury-Fed Accord was established that once again made the FED independent.

This is well documented in "The Treasury-Fed Accord: A New Narrative Account"

http://www.richmondfed.org/publications/economic_research/economic_quarterly/pdfs/winter2001/hetzel.pdf

Finally, the reason why the dollar has lost value is obvious. The government spends too much money. This forces the Federal Reserve to debase the currency. No entity ever becomes wealthy when it spends more money than it takes it.

[bigjon]

Wow. You really need to go back and read the book again then. Griffen, who is obviously no fan of the FED, quite clearly states the problem IS the government. The very reason they created the FED was to be able to borrow vast amounts of money, without any real intention of every paying it back.



Furthermore, during WWII the Federal Reserve was completely subject to the Treasury Department, and monetized the enormous war debt while holding interest rates at 2 1/2%. In 1951, the Treasury-Fed Accord was established that once again made the FED independent.

This is well documented in "The Treasury-Fed Accord: A New Narrative Account"

http://www.richmondfed.org/publications/economic_research/economic_quarterly/pdfs/winter2001/hetzel.pdf

Finally, the reason why the dollar has lost value is obvious. The government spends too much money. This forces the Federal Reserve to debase the currency. No entity ever becomes wealthy when it spends more money than it takes it.


Gee those poor bankers have been victimized by our unscrupulous government. We really owe them an apology.

What does the blnd in your handle stand for... blind.

No oversight over any meetings, no means to remove any of those appointee's, no control whatsoever by gov. Never an outside independent audit of the Fed, they claim to be a non-profit, but have never proved it.

[Riskfactor]

why would anyone in their right mind sell their shares of the fed?

[shrpblnd]

why would anyone in their right mind sell their shares of the fed?

Stock in the Federal Reserve may not be sold, traded, or pledged as security for a loan. The only way to acquire it is to become a member bank.

Dividends are, by law, 6 percent per year of the money invested. So if you are a bank and you own $1 million worth of Federal Reserve stock--remember this value never changes, since the stock can never be traded so the value never increases--then the Federal Reserve will pay you $60,000 per year in dividends.

This is not a huge windfall. I can get 5 percent from a CD currently. A bank would typically make more money if instead of owning this stock, they took the same money and made a home or auto loan.

The whole issue of dividends being paid to member banks is a red herring. By focusing on this, you are missing the bigger picture.

[shrpblnd]

no control whatsoever by gov. Never an outside independent audit of the Fed, they claim to be a non-profit, but have never proved it.

The Federal Reserve is subject to oversight by Congress, which can alter it by statute at any time, and the FED makes a report twice a year to Congress. The board of directors and chairman of the Federal Reserve System are appointed by the President.

Edward Griffen clearly indicated that the government in fact has more control over the Federal Reserve than the bankers do, because the power structure is centralized at the top.

I think we have also already established the Federal Reserve is audited by the GAO. You may argue that the audits are not thorough enough, but the fact remains the FED is audited.

No audit is ever complete. Auditors only ensure that financial statements fairly represent the organization's performance, by analyzing the data on a test basis to verify that the financial statements are free from material misstatement.

[bigjon]

The Federal Reserve is subject to oversight by Congress, which can alter it by statute at any time, and the FED makes a report twice a year to Congress. The board of directors and chairman of the Federal Reserve System are appointed by the President.

Edward Griffen clearly indicated that the government in fact has more control over the Federal Reserve than the bankers do, because the power structure is centralized at the top.

I think we have also already established the Federal Reserve is audited by the GAO. You may argue that the audits are not thorough enough, but the fact remains the FED is audited.

No audit is ever complete. Auditors only ensure that financial statements fairly represent the organization's performance, by analyzing the data on a test basis to verify that the financial statements are free from material misstatement.

The main fact remains, that it is a secretive org that puts the control of our money in the hands of the bankers, when the control should be in the hands of the people. It allows bankers to receive value where bankers through special privilege are allowed to make money from thin air and then charge for that fiction and receive real value.

This is nothing but highway robbery dressed up as honest business by liars that has robbed the people of their property.

[Riskfactor]

Stock in the Federal Reserve may not be sold, traded, or pledged as security for a loan. The only way to acquire it is to become a member bank.

Dividends are, by law, 6 percent per year of the money invested. So if you are a bank and you own $1 million worth of Federal Reserve stock--remember this value never changes, since the stock can never be traded so the value never increases--then the Federal Reserve will pay you $60,000 per year in dividends.

This is not a huge windfall. I can get 5 percent from a CD currently. A bank would typically make more money if instead of owning this stock, they took the same money and made a home or auto loan.

The whole issue of dividends being paid to member banks is a red herring. By focusing on this, you are missing the bigger picture.

ownership of stock in the Federal Reserve is quite a different type of ownership of stock from, say, McDonald's. can we agree on this?

it seems its not so much stock acquired to gain profit, as it is a membership card into an elite club of players. can we agree on this? after all, what's the point of issueing stock if it doesn't serve a purpose. so what is the purpose Mr. Shrpblnd? can you tell us in a sentence?

[shrpblnd]

ownership of stock in the Federal Reserve is quite a different type of ownership of stock from, say, McDonald's. can we agree on this?

it seems its not so much stock acquired to gain profit, as it is a membership card into an elite club of players. can we agree on this? after all, what's the point of issueing stock if it doesn't serve a purpose. so what is the purpose Mr. Shrpblnd? can you tell us in a sentence?

Yes, I have said all along Federal Reserve stock is fundamentally different from a publicly traded corporate stock.

Yes, buying stock is the price of admission to an elite club. This is also correct. For the record, there are other benefits to being a member of this club in addition to the dividend.

However, please keep in mind that it is NOT necessary to be a member bank in order to participate in the fractional reserve system. Many commercial banks are state chartered institutions and are not member banks. Non-member banks can just as easily make money via the fractional reserve system.

In fact, recent evidence suggests the Federal Reserve is rapidly losing control over the money supply because investment banks, which are NOT members of the FED, have created a massive credit bubble through sophisticated financial instruments such as deriviates, credit-swaps, and CDO's.

[shrpblnd]

"The regional Federal Reserve banks are not government agencies. ...but are independent, privately owned and locally controlled corporations." -- Lewis vs. United States, 680 F. 2d 1239
9th Circuit 1982

http://volunteersilver.com/lewis.html

It is correct the Federal Reserve is not a government agency. No one is disputing that. The Federal Reserve is indeed an independent, non-profit, federally chartered corporation.

The link is a well written analysis of the Federal Reserve's structure and care must be taken not to quote out of context regarding the issue of control.

Reading the entire opinion, the court clearly understood that that each Reserve Bank is subject to the Board of Governors for activities outside of daily operations. Remember, the Chairman and Vice-Chair of each Reserve Bank is not even appointed by the member banks, but instead by the Board of Governors. I have added emphasis of the key sections.

As I stated before, the real power is centralized at the top, specifically the Board of Governors, and the FOMC, of which all of the key positions are appointed by the President and confirmed by Congress.


Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stockholding commercial banks elect two thirds of each Bank's nine member board of directors. The remaining three directors are appointed by the Federal Reserve Board. The Federal Reserve Board regulates the Reserve Banks, but direct supervision and control of each Bank is exercised by its board of directors. 12 U.S.C. § 301. The directors enact by-laws regulating the manner of conducting general Bank business, 12 U.S.C. § 341, and appoint officers to implement and supervise daily Bank activities. These activities include collecting and clearing checks, making advances to private and commercial entities, holding reserves for member banks, discounting the notes of member banks, and buying and selling securities on the open market. See 12 U.S.C. §§ 341 [**5] 361.

Each Bank is statutorily empowered to conduct these activities without day to day direction from the federal government. Thus, for example, the interest rates on advances to member banks, individuals, partnerships, and corporations are set by each Reserve Bank and their decisions regarding the purchase and sale of securities are likewise independently made.

It is evident from the legislative history of the Federal Reserve Act that Congress did not intend to give the federal government direction over the daily operation of the Reserve Banks:

It is proposed that the Government shall retain sufficient power over the reserve banks to enable it to exercise a direct authority when necessary to do so, but that it shall in no way attempt to carry on through its own mechanism the routine operations and banking which require detailed knowledge of local and individual credit and which determine the funds of the community in any given instance. In other words, the reserve-bank plan retains to the Government power over the exercise of the broader banking functions, while it leaves to individuals and privately owned institutions the actual direction of routine.

[Veritas]

The very reason they created the FED was to be able to borrow vast amounts of money, without any real intention of every paying it back.

That is correct. They have no intention of ever paying it back and they really don't need to. However, there is interest applied to this debt and if the debt remains forever, somebody is making a huge profit. Who profits?

Finally, the reason why the dollar has lost value is obvious. The government spends too much money. This forces the Federal Reserve to debase the currency. No entity ever becomes wealthy when it spends more money than it takes it.

The government is devaluating the currency so we can close the trade deficit, but since it violates trade laws, they can't report it.

Watch the major funds. They are making a ton and they are investing in U.S. companies. Hedge funds, and most investment firms, had the highest returns ever last year.

[shrpblnd]

However, there is interest applied to this debt and if the debt remains forever, somebody is making a huge profit. Who profits?


I know this is hard for some of the conspiracy fans to believe, but there is NO direct profit by the Federal Reserve. The government pays the Federal Reserve interest on the bonds that it holds, but the Federal Reserve returns all of this money (minus it's operations costs and the modest dividend paid to member banks) at the end of the year back to the government.

The commercial banks do make an indirect profit as follows: The FED lends money to the government. The government spends this money paying employees and contractors. The employees and contractors then deposit this money at a commercial bank. The commercial banks can then loan out this money based on fractional reserve banking at a profit.