Everyone Knows that the Federal Reserve Banks Are PRIVATE … Except the American People

Most Americans Still Don’t Know that Federal Reserve Banks Are Private Corporations

The country’s most powerful “agency” – the Federal Reserve – is actually no more federal than Federal Express.

The U.S. Supreme Court ruled in 1928:

Instrumentalities like the national banks or the federal reserve banks, in which there are private interests, are not departments of the government. They are private corporations in which the government has an interest.

The long-time Chairman of the House Banking and Currency Committee (Charles McFadden) said on June 10, 1932:

Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies ….

The Fed itself admitted (via Bloomberg):

While the Fed’s Washington-based Board of Governors is a federal agency subject to the Freedom of Information Act and other government rules, the New York Fed and other regional banks maintain they are separate institutions, owned by their member banks, and not subject to federal restrictions.

For that reason, the New York Fed alleged in the lawsuit brought by Bloomberg to force the Fed to reveal some information about its loans – Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan) – that it was not subject to Federal Freedom of Information Act.

As Bloomberg reported in a separate article:

The Federal Reserve Bank of New York … runs most of the lending programs. Most documents relevant to [a freedom of information lawsuit filed by Bloomberg news] are at the New York Fed, which isn’t subject to FOIA law [a law which applies to Federal agencies], according to the central bank. The Board of Governors has 231 pages of documents, to which it is denying access under an exemption for trade secrets.

San Francisco Federal Reserve research analyst David Lang confirmed in 2011:

[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.”

The senior counsel for the Federal Reserve confirmed in a court hearing in the Bloomberg lawsuit that the Federal Reserve Banks are “independent corporations”, which are “not agencies”, are “privately held”, and have “private boards of directors”.

And Federal Reserve law enforcement officers agree.

Postscript:  The Bank of International Settlements (BIS) – which is the “Central Banks’ Central Bank” – is, in turn, owned by the Fed and other central banks:

The BIS is a closed organization owned by the 55 central banks. The heads of these central banks travel to the Basel headquarters once every two months, and the General Meeting, the BIS’s supreme executive body, takes place once a year.

So the private banks own the Fed (and other central banks), and the central banks own BIS.

This entry was posted in Business / Economics, Politics / World News. Bookmark the permalink.
  • Charlie Primero

    Wrong. Entities which receive public funding are not Private. They are National Socialist, in other words Fascist.

    The Free Lakota Bank is a private bank because it receives no public funds like the Federal Reserve banks do. www freelakotabank com

    If you misunderstand the problem, you cannot develop a good solution.

  • jadan

    Members of Congress will assert that the Fed is subject to congressional regulation and oversight, which makes it seem like a contractor for government services. But the idea that the financial function of the nation is something the government is better equipped to perform is never expressed. Outrage over NSA surveillance obscures the fact that unelected bankers and private financiers have always exercised an undemocratic, nay, totalitarian power over individuals and their destinies. The money power is actually more formidable than surveillance power.

  • Eric Hodgdon

    AND political parties are likewise PRIVATE entities.
    Death to the federal government of the USA.

    • Blair T. Longley

      The whole thing is run by factions of a Private Property Party, based on legalized lies, backed by legalized violence. However, the foundations of that are that human beings operate as robbers in their environment. Human realities are always organized lies, operating organized robberies.

      Anyway, Eric, watch out what you wish for, because you might get that! I find it tragic to watch the checks and balances, and the rule of law, be systematically destroyed by the cumulative effects of the funding of politics taking over EVERYTHING! A democratic republic, governed by the rule of law, is as good a theory as possible. THE PROBLEM IS WHAT THIS ARTICLE POINTS OUT: ABOUT 99% OF AMERICANS ACT LIKE POLITICAL IDIOTS, OR SHEEPLE WHO ARE BEING FLEECED, AND SET UP TO BE SLAUGHTERED BY THE ABOUT 1%.

      However, I would not blame that on the formal structure of the Federal Government of the USA, but rather, the long history of the triumphant application of the methods of organized crime, which covertly took control over the Federal Government, more and more, faster and faster, which has turned it into the heart of the global beast of runaway fascist “plutocracy,” where the “wealth” of that plutocracy primarily comes from having legalized private banks being able to counterfeit the public money supply.

      • Eric Hodgdon

        Breaking up the country into 7 parts requires a new Constitution and new government.

      • Eric Hodgdon

        Breaking up the country into 7 parts requires a new Constitution and new government.

      • Eric Hodgdon

        Breaking up the country into 7 parts requires a new Constitution and new government.

  • guest

    Businesses with government grants of monopoly power are not private:

    Why the Greenbackers Are Wrong (AERC 2013)
    http://www.tomwoods.com/paper/

    … being created by an act of Congress, having your board’s personnel appointed by the U.S. president, and enjoying government-granted monopoly privileges without which you would be of no significance, are not the typical features of a “private” institution.

    Gold Bugs and Anti-Gold Bugs
    http://mises.org/daily/6224/

    The arguments by American critics of a gold standard all rest on this unstated presumption: The economic outcomes of policy decisions made by a committee of 12 salaried bureaucrats, 7 of whom were appointed by the president of the United States, and 5 of whom were appointed by the largest regional banks that own a majority of shares of the 12 regional Federal Reserve banks, are better for the nation than the decisions of millions of owners of gold coins, who seek their own interests.

    No company can give itself monopoly power. Only governments can grant this, in violation of individual rights.
    This is true even if the company helps write the regulations or if the company is successful at persuading people to vote for the CEO to head up regulatory agencies. Monopoly power requires an existing government regulatory agency to grant exclusive production “rights”.
    The problem has always been government regulations, themselves, not free market income inequality.
    The solution is to get government out of the economy, and to only enforce private property rights.

    • guest

      Origins of the Federal Reserve
      http://www.lewrockwell.com/1970/01/murray-n-rothbard/monetary-crime-bosses/

      The conferees worked for a solid week at Jekyll Island to hammer out the draft of the Federal Reserve bill. In addition to Aldrich, the conferees included Henry P. Davison, Morgan partner; Paul Warburg, whose address in the spring had greatly impressed Aldrich; Frank A. Vanderlip, vice president of the National City Bank of New York; and finally, A. Piatt Andrew, head of the NMC staff, who had recently been made assistant secretary of the treasury by President Taft.

      After a week of meetings, the six men had forged a plan for a central bank, which eventually became the Aldrich Bill. Vanderlip acted as secretary of the meeting and contributed the final writing.

      The only substantial disagreement was tactical, with Aldrich attempting to hold out for a straightforward central bank on the European model, while Warburg and the other bankers insisted that the reality of central control be cloaked in the politically palatable camouflage of “decentralization.” It is amusing that the bankers were the more politically astute, while the politician Aldrich wanted to waive political considerations. Warburg and the bankers won out, and the final draft was basically the Warburg plan with a decentralized patina taken from Morawetz.

    • guest

      And again:

      Origins of the Federal Reserve
      http://www.lewrockwell.com/1970/01/murray-n-rothbard/monetary-crime-bosses/

      As an outgrowth of Forgan’s concerns, the reformers decided to cloak their new central bank in a spurious veil of “regionalism” and “decentralism” through establishing regional reserve centers, which would provide the appearance of virtually independent regional central banks to cover the reality of an orthodox, European, central-bank monolith.

    • Blair T. Longley

      Too little. Too late. We can never go backwards …

      • guest

        Gold isn’t backwards – fiat money is; Even “debt free” fiat money created and spent directly into the economy by the Treasury.

        Here, check it out:

        Why the Greenbackers Are Wrong (AERC 2013)
        http://www.tomwoods.com/paper/

  • Joe

    Hell, most people don’t know their so called government agencies are in fact registered corporations disguised as government agencies. Not only are they all registered in Switzerland where all corporations have to be registered, all those corporate government agencies are all traded on the New York stock exchange and are owned by private shareholders. From your police forces to the judicial systems they can all be found on the stock exchange if you so choose to do the research on them. In fact so can your own corporate persona that was created by our governments can be found there too. We are all traded like cattle!!

  • Rehmat

    In 2011, Rep. Ron Paul (R-Texas) and Rep. Dennis Kucinich (D-OH) angered several Jewish groups for calling audits of privately-owned Frederal Reserve, formed by an act of Congress in 1913 as a way of stabalizing banking industry. Why?

    The US government has never owned a single share of Federal Reserve Bank stock. However, the US President do appoints the Governors of the Federal Reserve Board who are then confirmed by the Senate. The secret author of the Act, German-born American Jewish banker Paul Warburg (died 1932), a representative of Rothschild bank , coined the name ‘Federal’ from thin air.

    http://rehmat1.com/2011/12/03/lobby-attacking-federal-reserve-is-anti-semitism/

  • mmmmikkimac

    And voters have to accept the blame for re-electing the same good old boys who are career politicians and forgot why they went to Washington in the first place: the voters of their state who put them there. It is my opinion that the current members of congress are the most corrupt congress we’ve ever had and I think anyone who has been in congress for 20-30 yrs is as corrupt as they come.

  • Afnan

    For the federal reserve to be part of the government would be illegal. They are separate from the government, but the government still exerts A TON of influence on it. The chairman is appointed by the president and approved by congress. The Fed still acts in the best interest of the economy.

  • Blair T. Longley

    THAT

    “Everyone Knows that the Federal Reserve Banks Are PRIVATE

    … Except the American People”

    IS THE SINGLE MOST IMPORTANT SOCIAL FACT IN AMERICA!

    I have been working on these kinds of political problems for several decades … For several years, I have been collecting my thoughts on these topics in the English language forum of the Marijuana Party of Canada, in a thread entitled “Some Monetary System articles.” As well, there is a Web page in our general links which has a collection of my favourite videos on that topic.

  • Rangerider49

    The two links are broken just below the last graphic!

 

 

Twitter