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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (107588)	6/8/2001 11:21:19 AM
From: Ilaine	Read Replies (2) \| Respond to of 436258

I think this is the answer to your questions, Ken. I found it in the very first book I got from the Federal Reserve, a couple of years ago, in fact. Who owns "the frb"? Each regional Federal Reserve bank is "owned" by its member banks, which are required by law to subscribe to stock in their regional Federal Reserve Bank in an amount equal to 3% of their capital and surplus. The stock does not carry voting rights, and may not be sold or pledged as collateral for loans. Members receive a 6% dividend annually on their stock, as prescribed by law, and vote for the Class A and B directors of the Reserve Bank. In 1993, there were 4,338 member banks. >>As suggested previously, the nation’s banks can be divided into three types according to which governmental body charters them and whether or not they are members of the Federal Reserve System. Those chartered by the federal government (through the Office of the Comptroller of the Currency in the Department of the Treasury) are national banks; by law, they are members of the Federal Reserve System. Banks chartered by the states are divided into those that are members of the Federal Reserve System (state member banks) and those that are not (state nonmember banks). State banks are not required to join the Federal Reserve System, but they may elect to become members if they meet the standards set by the Board of Governors. 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.<< federalreserve.gov This is found at pages 13-14 as indicated in the text, pages 18-19 according to Adobe Acrobat. The persons who serve on the Boards of Directors as Class "B" and "C" directors are elected by the member banks (Class "B"), and the Board of Governors (Class "C") to represent the public, - in Richmond, for example, I see someone from a hospital, someone from a nursery, and someone from a department store. rich.frb.org