U.S. Government Structure

[rdmapes]

The Fed Bank court ruling of LEWIS v. UNITED STATES, 680 F.2d 1239 (1982) helps illustrate how Americans have been fooled into believing that the Fed is strictly a government entity.

      "Examining the organization and function of the Federal Reserve Banks, and applying the relevant factors, we conclude that the (Fed) Banks are not federal instrumentalities for purpose of the FTCA, but are independent, privately owned and locally controlled corporations.

      Each Federal Reserve Bank is a separate corporation owned by commercial banks in its region. The stock-holding commercial banks elect two thirds of each Bank's nine member board of directors. The remaining three directors are appointed by the Federal Reserve Board. The (Fed) Board regulates the (Fed) Banks, but direct supervision and control of each Bank is exercised by its board of directors."

[Loctavious]

Whereas i voted YES, my caviat is that the AUDIT, seeing it's markedly absent, Should go back a decade or so.  Never know what one administration left for the other.

[edakrupp]

Your question is two fold and I am confused. No it is not Private, and Yes we should be able to audit books, because being tax payers, it makes us their employer.

[Chris Santee]

We should clarify something:

Who owns the Federal Reserve?
The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It 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. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

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. However, owning Reserve Bank stock is quite different from owning stock in a private company. 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 stock may not be sold, traded, or pledged as security for a loan; dividends are, by law, 6 percent per year.

[rdmapes]

Chris,
Yes, it is independent within the government, but the government cannot send the GOA to audit and does not have ownership. A strange relationship for something that is supposed to be part of the government. Even though the president has a say in who runs the Fed it is by and large outside of the control of government. This can be a good thing as well as bad. When the money system is not based on value and bonds are floated to create more debt w/o any means to pay it off we are in trouble.  President Nixon removed the gold standard because the money flow could not be inflated/deflated or controlled as needed with a dynamic economy.  Our economy is so dynamic it has changed from production based to consumer/service based. Also, I recall reading something about President Kennedy trying to move the control of Fed to the government or creating a government central bank, but it never went anywhere after his assassination.
A house bill does exist to audit the Fed, but needs more Rep's to sign on. Then the Speaker will bring it up for a vote if there is enough support, H.R. 1207. You don't hear much in the news about it. This one subject is like a Alder tree, the root system spreads for miles it left alone and gets into everything.

Ron

[Chris Santee]

I believe Ron Paul is behind the Bill you refer to, Ron.
I support it.
Our Congress, as of yet, has not.

And Loctavious, I would love to see the audit "all the way back".