Is the Federal Reserve System (FED) Public or Private

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By Alan Myers

“The regional Federal Reserve banks are not government agencies. …but are independent, privately owned and locally controlled corporations.”  Lewis vs. United States, 680F. 2d 1239 9^th Circuit 1982.

1. IS THE FED PUBLIC OR PRIVATE?

            The short answer, Private.

2. WHAT CONDITIONS INDICATE THAT THE FED IS PRIVATE?
3. a) The FED includes 12 banks, their 23 branches and a Board of Governors (BOG).
4. b) Each FED bank is an independent, privately owned and run-for-profit corporation.
5. c) Each FED bank has its own president, VP, board of directors and employees.
6. d) Each FED bank’s shares of stock are owned by banks, not the public or government.
7. e) Each FED bank’s shares of stock are never publicly traded.
8. f) The FED banks are self-funded and do not receive any funding from any government
9. g) FED bank stockholders receive yearly dividend, up to 6%, based on their capital.
10. h) The FED refuses to honor Freedom of Information Act (FOIA) requests.
11. i) To audit the FED requires Congressional authorization.
12. j) All FED banks are subject to state property tax laws.
13. k) The employees of all FED banks and BOG belong to one private retirement system.
14. l) There are federal circuit court cases that describe the FED as being private.
15. m) Each FED bank’s net earnings are sent to the U.S. Treasury as a Franchise Tax.

            Therefore, the short answer is still, Private.

3. FED FACTS
4. a) None of the FED banks have a bank account in their own name.
5. b) The FED is charged a per note charge for each FRN printed by the Bureau.
6. c) None of the FED banks have any M1 Money or reserves of their own.
7. d) The FED acquires assets and satisfies expenses by creating Reserves.           

            The Take Away – The FED is a group of 12, private corporations, run for the sole benefit of its stockholders, which are themselves privately owned, run-for-profit banks.  The FED is a “regulator” that is owned and controlled by the entities and people it is intended to regulate.  That is to say, the regulator is owned and controlled by the regulatees.

Alan Myers is a San Diego CPA and forensic accountant.  For 8 years, he has dedicated himself to researching, studying and analyzing the Federal Reserve System, banking and the national debt.  He is a writer, speaker and radio commentator on these and other related topics.  You can contact Alan at: Alan Myers, CPA [email protected]

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