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.

"Hint: it isn't the consumers."

Really? In the old days, it was the consumers. They were responsible for reading what they signed, answering the loan officer's questions truthfully, and understanding that on a certain date they needed to make a payment of $X, every month. This applied to everything from houses to cars to getting a credit card at Sears.

I have yet to hear about a case where an escrow closer failed to point out the monthly obligation to the person signing the documents. I have heard of several situations where the borrower signed a statement saying they made $80,000 a year making beds at Motel 6; claimed to be a manager working at XYZ Corp, except XYZ never heard of the person; even people showing up at closings with drivers' licenses stating they were the borrower, until a quick comparison with the photo at the DMV database shows two VERY different people. Barring such obvious fraud, however, it is highly unlikely that anyone making $36,000/year really thinks they can pay $3600/month on a $600,000 house--otherwise they'd be out shopping for that $100,000 H2.

Yeah, maybe the bankers should have known what they were selling, but at some point people need to be held accountable for the basics. People who know they can't afford steak more than once a week should be able to figure out how much they can pay for a house.

"Ain't no one so foolish about money as a rich man."

I'd agree if you're talking about a man born to richest like GWB. The sons of the wealthy are usually morons. But there ain't no one sharper than a poor man who makes himself rich. I once read where JD Rockefeller's father, a dirt poor grifter, used to play three card monte and and other con games on his son, and even take his money--all to teach him street smarts and how to outthink the next guy. Seems like it worked.

"We need to do this by midnight" i was told. "meet us in [the town] around 11 this evening and we will close on you and some other folk."

In a dim hotel lobby, after an hour drive in a Colorado winter, i have to skim read reams of contract and sign off.

upshot? They snuck in the $5k prepayment penalty. refused to answer any and all phone/e mail messages to get it changed. Took their $5k upon sale"

I don't mean to argue--if these terms were not disclosed the lender is at fault, and who closes anything in a hotel at 11 PM?--but, I notice that you mention this was on your primary residence. You must surely know, and have been informed, that under RESPA you have a 3 business day right of rescission. If you signed the Affidavit of Rescission and alerted the escrow agent, or even produced a certified mail receipt dated within those three days, the loan would have been canceled without penalty. Furthermore, you have plenty of time over the three days to read the docs from end to end after they were signed. Any attorney will also tell you that if you were not made aware of all this, your right to rescind is limitless and the lender can be sued.

My point is that there are safeguards in place to prevent all but the most egregious acts.

As a close friend of someone who DIED in that fire, that line's not exactly funny. The guy couldn't find something else to sing about except the worse concert tragedy since Altamont?? Please keep crap like this off your website. Thank you.

I too love black humor, but the galling thing about the line was how ironically incorrect it was; it wasn't Great White who caught on fire, it was their audience. A band/singer on fire, yeah, that can be humorous; a hundred of their fans dying because of the band's stupidity, well, that's not.