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Strategies & Market Trends : Rande Is . . . HOME
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To: Rande Is who wrote (49115)3/14/2001 3:22:43 PM
From: WhatsUpWithThat  Read Replies (1) of 57584
 
"SEC. 7. After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders shall be entitled to receive an annual dividend of six per centum on the paid-in capital stock, which dividend shall be cumulative. After the aforesaid dividend claims have been fully met, all the net earnings shall be paid to the United States as a franchise tax, except that one-half of such net earnings shall be paid into a surplus fund until it shall amount to forty per centum of the paid-in capital stock of such bank"

National banks are required to own shares in a Fed Reserve bank, and in return they get a max 6% dividend on the paid-in capital stock, net of taxes; anything above 6% is paid to the fed govt as a franchise tax. Seems like not much of a return, unless I'm missing something.
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