Zeev,
The real ownership of the federal reserve system according to the fed itself is posted below. Using the formula outlined below I have a lot of trouble seeing how one bank (or individual) has controlling interest. Even if they did they don't get to vote.
bog.frb.fed.us
"At the end of 1993, 4,338 banks
were members of the Federal Reserve System-3,360 national
banks and 978 state banks-out of 11,212 commercial banks
nationwide.
Member banks must subscribe to stock in their regional Federal
Reserve Bank in an amount equal to 3 percent of their capital and
surplus. The holding of this stock, however, does not carry with it
the control and financial interest conveyed to holders of common
stock in for-profit organizations: It is merely a legal obligation that
goes along with membership, and the stock may not be sold or
pledged as collateral for loans. Member banks receive a 6 percent
dividend annually on their stock, as specified by law, and vote for
the Class A and Class B directors of the Reserve Bank. The stock is
not available for purchase by individuals."
There is one thing that I think is criminal about the fed (see below)- foreign banks OK but the "certain actions" part and the close relationship with the commercial banks leaves an avenue for abuse and fraud IMHO. It also allows the fed to tinker with the markets which is counter productive if done in secret.
"The Reserve Banks, like the Board, are subject to audit by
the GAO, but certain functions, such as transactions with foreign
central banks and open market operations, are excluded from au-dit." |
