Who Owns the Federal Reserve?

Who Owns the Federal Reserve?

The Federal Reserve, colloquially known as the "Fed," is the U.S. central banking system, established in 1913 by the Federal Reserve Act. It operates independently within the government, with its monetary policy decisions free from executive or legislative approval.

Distinctively, the Fed comprises 12 semi-public regional banks, each catering to a specific U.S. region. Commercial banks in these regions hold non-tradable shares in their respective Federal Reserve Bank, but this doesn't confer control. These member banks, however, do elect two-thirds of each regional bank's board.

Ultimately, the Fed, combining elements of both private and public control, maintains a system of checks and balances. It's accountable to Congress and the public, ensuring no single entity dominates its decisions or operations.

‍

What Banks is the Federal Reserve Made Up Of?

The Federal Reserve System in the United States is composed of twelve regional Federal Reserve Banks. These banks each serve a particular district or region within the country. The twelve banks and their locations are as follows: 

• Federal Reserve Bank of Boston (1st District) 
• Federal Reserve Bank of New York (2nd District)
• Federal Reserve Bank of Philadelphia (3rd District)
• Federal Reserve Bank of Cleveland (4th District)
• Federal Reserve Bank of Richmond (5th District)
• Federal Reserve Bank of Atlanta (6th District)
• Federal Reserve Bank of Chicago (7th District)
• Federal Reserve Bank of St. Louis (8th District)
• Federal Reserve Bank of Minneapolis (9th District)
• Federal Reserve Bank of Kansas City (10th District)
• Federal Reserve Bank of Dallas (11th District)
• Federal Reserve Bank of San Francisco (12th District)

Each of these banks has a significant role in processing financial transactions, distributing currency to banks, and conducting economic research. They also contribute to monetary policy by providing information on their regional economies to the Federal Reserve's Board of Governors, which uses this information in decision-making processes.

‍

Who Owns the Regional Federal Banks?

The twelve regional Federal Reserve Banks are nominally owned by their district's member banks, commercial entities holding non-tradable stock in their regional Fed. Membership mandates purchasing stock equivalent to 6% of the bank's capital and surplus, half paid in, half callable by the Board of Governors. Yet, this ownership doesn't mirror typical corporate control.

Member banks earn a fixed 6% dividend annually on their stock by law and vote for six of the nine regional Fed directors, with the remaining three appointed by the Board of Governors. Despite this "ownership," the system prioritizes public interest over control. The overarching Board of Governors, a federal agency, has members appointed by the U.S. President and confirmed by the Senate.

‍

Do the Rothschilds own the Federal Reserve?

Contrary to popular myth, the Rothschild family does not own the Federal Reserve. The Fed, the U.S. central bank, was established by Congress in 1913 to ensure a stable financial system. As an independent governmental entity, it is not owned by any private individuals or families, including the Rothschilds. 

Member banks hold non-controlling, non-tradable shares in their regional Federal Reserve Banks, ensuring no private ownership or control over the Fed. As the largest bank in the US across each state, JPMorgan holds the most significant influence within the Federal Reserve system.

‍

Bottom Line

In conclusion, the Federal Reserve, America's central banking system, operates independently within the government and is composed of twelve regional banks. These banks are nominally owned by their district's member banks through non-tradable shares. However, this ownership does not bestow traditional corporate control.

While JPMorgan, as the largest bank, wields considerable influence, no private entity, including the often-rumoured Rothschild family, owns or controls the Fed. The system's unique structure safeguards public interest, ensuring a balanced financial system free from domination by any single entity.