Can Someone Please Explain to Me . . .

how the fed owns some banks, such as JP Morgan, Citi, etc.

I read somewhere here a few weeks ago that this wa sthe case, but I always thought that they were private banks . . .


So what's the story morning glory?

The Federal Reserve bank is a board of private Banks. It's function is described in its charter, which is renewed every 14-years by congressional authority.

On the 'board' are the banks you mention. So in essence, the Fed is owned by the private banks - the opposite of what you were saying.. It is a corporate entity comprised of private bank officers.

All of the central banks of the world operate like this.

The actual 'explicit' list of membership on the Federal Reserve Board, (in other words who owns it) is 'restricted' from public review... the charter and relevant legislation gives the Fed the right to refuse oversight (no prying government eyes) and cannot be audited by a government body (another right they deny the 'little people').

Sounds outrageous? It is.

The president is allowed to 'appoint' one member to the bank as a representative of the people of the US.... HOWEVER ... the appointee MUST come from a list of people 'pre-approved' by the Fed board. SO Ben Bernanke is actually "our" appointee - but their employee....

Considering the new 'corporate cooperation' legislation in place, he answers to them and does what they tell him to do.... he's just a mouthpiece for them with no accountability for the Fed actions he 'authorizes'.

Need more?

[edit on 8-10-2008 by Maxmars]

That answers my question nicely.

Thank you for the plethora of information! Much appreciated!

[edit on 8/10/2008 by xxpigxx]