Who owns the Federal Reserve bank.. what is their interest?
The Federal Reserve is controlled by the Board of Governors, which is a 100% government agency. The Board members are appointed by the President and confirmed by the Senate, similar to other Federal officials. There are 12 Federal Reserve district banks. These banks are setup similar to private corporations, but with some distinct differences. First, let’s look at the share structure of the district banks. Private individuals, corporations, foreign governments, etc. are not allowed to own Federal Reserve district bank stock. Nationally chartered banks (i.e. National Bank of Arizona or Bank of America, N.A., etc.) are required by law to SUBSCRIBE to Federal Reserve district bank stock. This makes them member banks of the Federal Reserve system. State banks may also become member banks, if they meet certain requirements. The amount of stock they must subscribe to is set by law to a percentage of the member bank’s paid-in capital. The member bank can hold no more and no less than the amou
