Foreign control, assassination, and money printing are the things that you might think of whenever you hear or read about the Federal Reserve Bank. The Fed wield considerable power evident after and during the financial crisis. Yet, it is quite amazing the things that reasonable people say about it.
There are numerous myths about the Federal Reserve Banking System. One of these is that it’s thought to be operated by foreigners. Federal Reserve Bank is actually an American institution. What most people know is on the surface.
Basically, it’s run by a combination of Federal Reserve board and the twelve Federal Reserve banks that form the system’s governance. Its Board of Governors is made of Americans. Several conspiracy-theory types often argue that vague global organizations control secretly the Federal Reserve Bank and some central banks.
Another myth about Federal Reserve Bank is that it is not part of the government of the USA. It’s a bit similar to the mentioned myth above, yet it has a story of its own. An expert says that the Federal Reserve System’s Board of Governors is a government entity. The seven members are appointed by the US president with the consent and advice of the Senate and should report semi-annually to the Congress.
Every district bank also has board of directors, which comprised three appointed by Board of Governors and six elected by member banks in a district.
Every member banks has a share in its regional Federal Reserve that pays six percent dividend. All earnings that are above the said percentage will go to the US Treasury. If you characterize member banks in terms of where they are paying their profits, they’ll go straight into the federal coffers.
Aside from that, you also have to know that the flag of the US flies outside the headquarters of Federal Reserve in Washington, DC.
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