After all necessary expenses of a Federal reserve bank have been paid or provided for, the stockholders of the bank shall be entitled to receive an annual dividend on paid-in capital stock of-- in the case of a stockholder with total consolidated assets of more than $10,000,000,000, the smaller of-- Chart 2. But also on the list are a wide array of trust funds, small banks, and individual investors. At that time, their total assets were listed at $143,000,000, from the sale of shares in the Federal Reserve Banks to stockholders of the national banks which subscribed to it. As we know from watching the business news, “oversight” basically means that Congress gets to see the results when it’s over. The Fed’s website insists that it is not a private corporation, is not operated for profit, and is not funded by Congress. Unlike the risky derivative debt, federal securities are considered “risk-free” for purposes of determining capital requirements, allowing the banks to improve their capital position so they can make new loans. This has the effect of allowing banks to reduce their reserves of risk-reducing capital and distribute these reserves to shareholders … So I’ve added each list as a PDF file which can be downloaded directly. This is extraordinary. However, owning Reserve Bank stock is quite different from owning stock in a private company. As such, avoiding the pit falls of the Federal Reserve conspiracy theories and misinformation is at times a futile effort. Source: ** Federal Reserve Directors: A Study of Corporate and Banking Influence ** - - Published 1983. The stockholders in the 12 regional Federal Reserve Banks are the privately owned banks that fall under the Federal Reserve System. There are twelve in total, one for each of the twelve Federal Reserve Districts that were created by the Federal Reserve Act of 1913. Ten percent of that is $700 billion. Over the years there has been much written and discussed surrounding the actual ownership of the Federal Reserve System within the United States. The FED began with approximately 300 people or banks that became owners (stockholders purchasing stock at $100 per share - the stock is not publicly traded) in the Federal Reserve Banking System. The Federal Reserve was set up in 1913 as a “lender of last resort” to backstop bank runs, following a particularly bad bank panic in 1907. The Fed generates profits for its shareholders. The list itself doesn’t breakdown ownership by regional Federal Reserve Banks. Once armed with factual knowledge the disorganized masses can organize around a social trust which is funded by tax dollars. Arming ourselves with factual information on the system and how it actually functions are the beginnings to exacting substantial and purposeful change which could benefit all. The Board of Governors (Board) is publishing a final rule that applies an inflation adjustment to the threshold for total consolidated assets in Regulation I. Each list contains hundreds of line items which would make it meaningless to include directly in the content of this post. Also unprecedented was the way the deal was funded. List of Federal Reserve Member Banks 1914. A mere 6% a year may not be considered a profit in the world of Wall Street high finance, but most businesses that manage to cover all their expenses and give their shareholders a guaranteed 6% return are considered “for profit” corporations. The Associated Press reported: “The Treasury Department, for the first time in its history, said it would begin selling bonds for the Federal Reserve in an effort to help the central bank deal with its unprecedented borrowing needs.”2. The Federal Reserve system is an imperfect, but rather innovative clearinghouse. For publication of Global Research articles in print or other forms including commercial internet sites, contact: [email protected]. According to the Fed’s website, the control Congress has over the Federal Reserve is limited to this: “[T]he Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute.”. For just over a century, The Fed has overseen the financial system of the US, but its track record has been far from perfect. I’d even dare say that the lists appear more normal and everyday than most would have considered. The only real leverage Congress has over the Fed is that it “can alter its responsibilities by statute.” It is time for Congress to exercise that leverage and make the Federal Reserve a truly federal agency, acting by and for the people through their elected representatives. None of its stock is owned by the government. In another bit of sleight of hand known as “fractional reserve” lending, the same reserves are lent many times over, further expanding the money supply, generating interest for the banks with each loan. If the Fed can demand AIG’s stock in return for an $85 billion loan to the mega-insurer, we can demand the Fed’s stock in return for the trillion-or-so dollars we’ll be advancing to bail out the private banking system from its follies. The Board of Governors in Washington, D.C., is an agency of the federal government and … The answer is both. The Federal Reserve Banks are not operated for the purpose of earning profits for their stockholders. Members will receive more detailed analysis on macroeconomic trends and discussions on esoteric philosophy. We are making such material available to our readers under the provisions of "fair use" in an effort to advance a better understanding of political, economic and social issues. If the Fed’s money comes ultimately from the taxpayers, that means we the taxpayers are paying interest to the banks on the banks’ own reserves – reserves maintained for their own private profit. The Centre of Research on Globalization grants permission to cross-post Global Research articles on community internet sites as long the source and copyright are acknowledged together with a hyperlink to the original Global Research article. The interest on bonds acquired with its newly-issued Federal Reserve Notes pays the Fed’s operating expenses plus a guaranteed 6% return to its banker shareholders. www.globalresearch.ca contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. These stocks can't be traded. I have always made the case that the faults in the system are the externalization of the faults within all of us. A Hidden Mystery – The 12+1 Symbolism of the Federal Reserve System, List of Federal Reserve Member Banks 1914, List of Federal Reserve Member Banks 2015, The Bitcoin Intelligence Operation and Communist China. – JC. An updated members list is also included from the year 2015. These balances are the namesake reserves of the Federal Reserve System. The website states: * “The twelve regional Federal Reserve Banks, which were established by Congress as the operating arms of the nation’s central banking system, are organized much like private corporations – possibly leading to some confusion about “ownership.” For example, the Reserve Banks issue shares of stock to member banks. FEDERAL RESERVE B A N K O F S T . That means we the taxpayers will be paying interest to the banks on at least $700 billion annually – this so that the banks can retain the reserves to accumulate interest on ten times that sum in loans. Among other benefits to the taxpayers. . Federal Reserve Bank (Reserve Bank) stockholders that have total consolidated assets above the threshold receive a … After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury.”5. 3. Vast conspiracy theories have been presented and laborious efforts have been undertaken to expose the actual shareholders and owners of the system. Which is why I suggest that the system is a reflection of the whole of the social trust, as opposed to some nefarious system which is covertly working against the disorganized masses. All of which have been met with the human predisposition for fantasy and misdirection. It is this list which has caused so much discussion and conspiracy surrounding the system itself. Who owns the Federal Reserve, who actually controls it, where does it get its money, and whose interests is it serving? No matter how much factual information is presented there are so many which refuse to believe or accept the reality of the human complexity involved in the machinations of the system itself. Proceedings of the Seventh Annual Meeting of Stockholders of the Federal Reserve Bank of Boston : Held at …  Free Books! The Federal Reserve’s moving interest rates to near zero resulted in one of the most challenging interest rate environments in our 103-year history. § 552, I request access to and copies of a list of all (a) stockholders of and, if there are any differences, (b) member banks and other financial institutions of the Federal Reserve Bank. The bonds then become the “reserves” that the banking establishment uses to back its loans. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. If the Fed were actually a federal agency, the government could issue U.S. legal tender directly, avoiding an unnecessary interest-bearing debt to private middlemen who create the money out of thin air themselves. 2015 LIST OF FEDERAL RESERVE BANK MEMBERS, SHAREHOLDERS, AND OWNERS Data compiled and presented by Philosophy of Metrics. The stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.”, * “[The Federal Reserve] is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms.”, * “The Federal Reserve’s income is derived primarily from the interest on U.S. government securities that it has acquired through open market operations. They make up an international banking cartel of wealth beyond comparison (Reference 1, 14). The website of the Federal Reserve Bank of New York explains that as money is redeposited and relent throughout the banking system, this 10% held in “reserve” can be fanned into ten times that sum in loans; that is, $10,000 in reserves becomes $100,000 in loans. The purpose of POM has always been to function within well-disciplined research habits and present a factual thesis on the international monetary framework. The new control rule (Control Rule) expands the relationships that an investor can […] The Fed announced on September 16 that it was giving an $85 billion loan to American International Group (AIG) for a nearly 80% stake in the mega-insurer. They are the Goldman Sachs, Rockefellers, Lehmans and Kuhn Loebs of New York; the Rothschilds of Paris and London; the Warburgs of Hamburg; the Lazards of Paris; and the Israel Moses Seifs of Rome. Pursuant to the federal Freedom of Information Act, 5 U.S.C. If you wish to use copyrighted material for purposes other than "fair use" you must request permission from the In an unprecedented move in March 2008, the New York Fed advanced the funds for JPMorgan Chase Bank to buy investment bank Bear Stearns for pennies on the dollar. The decision is the first such move since the global financial crisis 12 years ago, and limits how banks can spend their capital amid the coronavirus pandemic that has caused a sharp economic downturn. On January 30, 2020, the Board of Governors of the Federal Reserve System issued a final rule that would update and revise, to some degree, its framework for finding “control” under the Bank Holding Company Act of 1956, as amended (BHC Act). The Centre for Research on Globalization will not be responsible for any inaccurate or incorrect statement in this article. The Reserve Banks are not operated for profit, and ownership of a certain amount of stock is, by law, a condition of membership in the System. . The New York Times stated that the Federal Reserve Banks would be ready for business on August 1, 1914, but they actually began operations on November 16, 1914. The Fed periodically reports to Congress, but the Fed doesn’t ask; it tells. Usually, the number of votes a shareholder has is proportional to the number of shares he owns. To the Stockholders of the Federal Reserve Bank of St. Louis: There are furnished herein t h e following statements of t h e Federal Reserve Bank of St. Louis, including its Louisville, Memphis, and Little Rock Branches: ( 1 ) Assets, liabilities and capital accounts as of The Federal Reserve on Thursday ordered 34 major US banks to suspend share buybacks in the third quarter and limit dividend payments to shareholders. Photo: The Federal Reserve Board of Governors. LIABILITIES AND STOCKHOLDERS… A smear campaign against McFadden ensued and he was poisoned 3 years later. By continuing to use this site you agree to the use of cookies. Given that less than one percent of the Fed’s net earnings are distributed as dividends, it seems that an investor could easily find much more profitable ways to store their wealth than buying Federal Reserve stock. The deal was particularly controversial because Jamie Dimon, CEO of JPMorgan, sits on the board of the New York Fed and participated in the secret weekend negotiations.1 In September 2008, the Federal Reserve did something even more unprecedented, when it bought the world’s largest insurance company. "Commercial banks that are members of the Federal Reserve System hold stock in their District's Reserve Bank. All net earnings after expenses and dividends are paid to the Treasury. The Federal Reserve was created in 1913 by the Federal Reserve Act to serve as the nation's central bank. On May 23 1933, Congressman Louis T. McFadden brought impeachment charges against the members of the Federal Reserve Bank. Both of these lists can provide years of additional research. Federal Reserve Bank stock are different than the common stock of typical corporations. It was this money-creating process that prompted Wright Patman, Chairman of the House Banking and Currency Committee in the 1960s, to call the Federal Reserve “a total money-making machine.” He wrote: “When the Federal Reserve writes a check for a government bond it does exactly what any bank does, it creates money, it created money purely and simply by writing a check.”. Perhaps the plan is to swap them with the banks’ dodgy derivatives collateral directly, without actually putting them up for sale to outside buyers. . A long list of banks (but not other corporations) is also now protected from the short selling that can crash the price of other stocks. L O U I S January 3 1 , 1939. Ellen Brown, J.D., developed her research skills as an attorney practicing civil litigation in Los Angeles. The purpose of keeping funds at a Federal Reserve Bank is to have a mechanism for private banks to lend funds to one another. The initiative aims to help the Fed manage its balance sheet following its efforts to enhance its liquidity facilities over the previous few quarters.”. Monthly subscription cost of $15.00 or receive a 33% discount with a one year subscription cost of $120.00. While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations. There is no social division or barrier on human greed and weakness. In fact, 100% of its shareholders are private banks. . Its shareholders are private banks. Its structure as “independent within government” makes it hard to decipher precisely who owns it. The House of Morgan presided over American finance from the corner of Wall Street and Broad, acting as quasi-US central bank since 1838, when George Peabody founded it in London. The Federal Reserve Banks are not a part of the federal government, but they exist because of an act of Congress.Their purpose is to serve the public. (See E. Brown, “Bailout Bedlam,” webofdebt.com/articles, October 2, 2008.). In its latest power play, on October 3, 2008, the Fed acquired the ability to pay interest to its member banks on the reserves the banks maintain at the Fed. a truly “federal” Federal Reserve could lend the full faith and credit of the United States to state and local governments interest-free, cutting the cost of infrastructure in half, restoring the thriving local economies of earlier decades. Considering the hegemonic role of the US dollar in this system, it is difficult to write about one while avoiding the other. These … Among other special benefits, banks and other financial institutions (but not other corporations) can borrow at the low Fed funds rate of about 2%. Her eleven books include the bestselling Nature’s Pharmacy, co-authored with Dr. Lynne Walker, and Forbidden Medicine. But owning Reserve bank stock is nothing like owning stock in a private company. . Not the socialized form of capitalism which has used government regulation and legislation to reposition the system for the benefit of a few. The Federal Reserve is the cornerstone of the American economy. The Fed’s mandate was then and continues to be to keep the private banking system intact; and that means keeping intact the system’s most valuable asset, a monopoly on creating the national money supply. In Web of Debt, her latest book, she turns those skills to an analysis of the Federal Reserve and “the money trust.” She shows how this private cartel has usurped the power to create money from the people themselves, and how we the people can get it back. Federal funds are the reserve balances (also called Federal Reserve Deposits) that private banks keep at their local Federal Reserve Bank. It is intended to promote liquidity in the financing markets for Treasury and other collateral and thus to foster the functioning of financial markets more generally. The fact that the Fed does not get “appropriations” from Congress basically means that it gets its money from Congress without congressional approval, by engaging in “open market operations.”. The resource allows dealers to switch debt that is less liquid for U.S. government securities that are easily tradable.”, “To switch debt that is less liquid for U.S. government securities that are easily tradable” means that the government gets the banks’ toxic derivative debt, and the banks get the government’s triple-A securities. The program will auction Treasury bills to raise cash for the Fed’s use. Except for coins, every dollar in circulation is now created privately as a debt to the Federal Reserve or the banking system it heads.4 The Fed’s website attempts to gloss over its role as chief defender and protector of this private banking club, but let’s take a closer look. Readers will observe with a casual review of the lists that the usual suspects are included, such as JP Morgan, Goldman Sachs, etc.. I have included a full list from May 27, 1914, which would be the initial member’s composition when the Federal Reserve Act was passed on Christmas Eve 1913. Here is how it works: When the government is short of funds, the Treasury issues bonds and delivers them to bond dealers, which auction them off. When the Fed wants to “expand the money supply” (create money), it steps in and buys bonds from these dealers with newly-issued dollars acquired by the Fed for the cost of writing them into an account on a computer screen. Federal Reserve Bank of Boston. A smear campaign against McFadden ensued and he was poisoned 3 years later. The largest shareholders of the Federal Reserve Bank are the Rothschilds of London holding 57% of the stock which is not available for public trading. These trust funds can take controlling interests in each of the Federal Reserve Regional Banks. As such, to blame any particular group, or subgroup, for the calamitous results which Federal Reserve monetary policy has had on the world is futile and counterproductive to developing workable solutions to the challenges in this world of man-made things and systems. Comment on Global Research Articles on our Facebook page, Disclaimer: The contents of this article are of sole responsibility of the author(s). But is that true? These increasingly controversial encroachments on the public purse warrant a closer look at the central banking scheme itself. The Federal Reserve Banks kept $283 million, and the remaining $231 million was paid to its stockholders as dividends. Her websites are www.webofdebt.com  and www.ellenbrown.com . As most readers will know, the Federal Reserve System is made up of twelve regional districts and banks. 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