Federal Reserve Analyst: Fed Banks Are Private

Yes, the Federal Reserve Banks are PRIVATE

I’ve documented numerous times that the 12 Federal Reserve Banks are private.

For example, I noted last month:

Given that the 12 Federal Reserve banks are private – see this, this, this and this– the giant banks have a huge amount of influence on what the Fed does. Indeed, the money-center banks in New York control the New York Fed, the most powerful Fed bank. Indeed, Jamie Dimon – the head of JP Morgan Chase – is a Director of the New York Fed.

San Francisco Fed research analyst David Lang has just confirmed this once again:

[Question]: “I had a really quick question, the Federal Reserve Bank of San Francisco specifically, is that formed as a private corporation itself?”

David Lang: “Ah yes it is actually. yes our state chartered banks, banks under a charter share that and we pay a dividend on those shares.”

Hat tip Intel Hub.

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  • Tom Hickey

    The Fed regional banks are private, but the FRS is public-private partnership, and the majority of the Fed Board that sets monetary policy is appointed by the president with the consent of the senate. The chair person is effectively in control of the Fed board. The FRS was created by Congress and is subject to change by Congress.

    The Fed does essentially three things. 1) the Fed board sets monetary policy, 2) the FRS handles settlement of accounts in the interbank market through the regional banks, and the Fed chairman is the chief financial regulator of the US.