Get My Home Value

Who owns What Bank?

On Dec. 23, 1913, President Woodrow Wilson signed the Federal Reserve Act. Over the next year, a selection committee made up of Secretary of the Treasury William McAdoo, Secretary of Agriculture David Houston, and Comptroller of the Currency John Williams decided which U.S. cities would be a place of residence for one of 12 Federal Reserve District Banks.

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. So is the Fed private or public?

The answer is both. While the Board of Governors is an independent government agency, the Federal Reserve Banks are set up like private corporations. Member banks hold stock in the Federal Reserve Banks and earn dividends. Holding this stock does not carry with it the control and financial interest given to holders of common stock in for-profit organizations. The stock may not be sold or pledged as collateral for loans. Member banks also appoint six of the nine members of each Bank's board of directors.

Source: www.stlouisfed.org
Share this Post

Related posts

Historical Bank of England base rate

Historical Bank of England base rate

JULY 04, 2022

One of the great problems with our collective financial psyche is we normalise whatever the current situation is. This can…

Read More
Bank of England 50 Pound Note

Bank of England 50 Pound Note

JULY 04, 2022

The new £10 and £20 notes will also include Braille-like features for the first time, allowing visually impaired users to…

Read More