Everyone Knows that the Federal Reserve Banks Are PRIVATE … Except the American People

George Washington's picture

The country’s most powerful “agency” – the Federal Reserve – is actually no more federal than Federal Express.

The U.S. Supreme Court ruled in 1928:

Instrumentalities like the national banks or the federal reserve banks, in which there are private interests, are not departments of the government. They are private corporations in which the government has an interest.

The long-time Chairman of the House Banking and Currency Committee (Charles McFadden) said on June 10, 1932:

Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies ….

The Fed itself admitted (via Bloomberg):

While the Fed’s Washington-based Board of Governors is a federal agency subject to the Freedom of Information Act and other government rules, the New York Fed and other regional banks maintain they are separate institutions, owned by their member banks, and not subject to federal restrictions.

For that reason, the New York Fed alleged in the lawsuit brought by Bloomberg to force the Fed to reveal some information about its loans – Bloomberg LP v. Board of Governors of the Federal Reserve System, 08-CV-9595, U.S. District Court, Southern District of New York (Manhattan) – that it was not subject to Federal Freedom of Information Act.

As Bloomberg reported in a separate article:

The Federal Reserve Bank of New York … runs most of the lending programs. Most documents relevant to [a freedom of information lawsuit filed by Bloomberg news] are at the New York Fed, which isn’t subject to FOIA law [a law which applies to Federal agencies], according to the central bank. The Board of Governors has 231 pages of documents, to which it is denying access under an exemption for trade secrets.

San Francisco Federal Reserve research analyst David Lang confirmed in 2011:

[Question]: “I had a really quick question, the Federal Reserve Bank of San Francisco specifically, is that formed as a private corporation itself?”


David Lang: “Ah yes it is actually. yes our state chartered banks, banks under a charter share that and we pay a dividend on those shares.”


The senior counsel for the Federal Reserve confirmed in a court hearing in the Bloomberg lawsuit that the Federal Reserve Banks are “independent corporations”, which are “not agencies”, are “privately held”, and have “private boards of directors”.

And Federal Reserve law enforcement officers agree.

Postscript:  The Bank of International Settlements (BIS) – which is the “Central Banks’ Central Bank” – is, in turn, owned by the Fed and other central banks:

The BIS is a closed organization owned by the 55 central banks. The heads of these central banks travel to the Basel headquarters once every two months, and the General Meeting, the BIS’s supreme executive body, takes place once a year.

So the private banks own the Fed (and other central banks), and the central banks own BIS.

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indio007's picture

The FED is running some scam via the Borrower in Custody program.


Loans, and any related documents, must remain in the location designated in the BIC Collateral Certification.  Removal and relocation without approval of the Federal Reserve Bank of Cleveland is prohibited and may result in termination of the BIC arrangement.



All extensions of credit must be secured to the satisfaction of the Reserve Bank by collateral that is acceptable for that purpose. As such, the Federal Reserve Bank will file a UCC-1 Financing Statement


I challenge anyone to find a single  UCC-1 filed on favor of the Fed in any state of the union.

TheRegulator's picture

That would require some amount of effort. Unfortunately, we have become quite a lazy culture, which goes hand-in-hand with being brainwashed stupid. That said, you have a point.

involuntarilybirthed's picture

How is the Fed financed (wages, operating expenses)? 

Camtender's picture

"They are private corporations"

GW, if true, please find their state articles of incorporation. Don't all "private corporations" have articles of incorporation? If they are not incorporated in any state, why are we calling them this?

Can you find another "private corporation" without state articles?

chumbawamba's picture

I'm not sure about the Federal Reserve but the articles of incorporation for the IRS are floating around the internets.

I am Chumbawamba.

TuesdayBen's picture

These banks that own the Federal Reserve Bank, some are publicly traded, yes?  And their books thus subject to audit, right?  And the audit results in the public domain, right?

So, what portion of revenues and income of such banks is derived from their ownership stakes in the Federal Reserve Bank?  Or is this a silly question? 

Ghordius's picture

it's a good question. revenue & income goes to the US Treasury. control is through the political appointees like Bernanke

no, the sweet deal is somewhere else, and it's very simple: revolving doors of financial specialists

and so a Squid exec can become US Treasurer and/or Chairman of the FED and then go back a Primary Dealer

shovelhead's picture

Trade secrets my ass. How can an absolute monopoly have trade secrets? Who the fuck are it's competitors? Bullshit ruling.

Any and all information that crosses the Board of Governors desks, as a Federal agency, should be subject to the FOIA.

The Fed may be a private entity, but the Board most certainly is not.

We need to end this farce before it kills us by killing itself too.

auric1234's picture

Who the fuck are it's competitors?



Motorhead's picture

Yeah, gotta love those "trade secrets", eh?  I mean, those secrets are recipes for success, just look at the economy.  Great job, Fed!

Brixton Guns's picture

"Private banks."  REALLY?  You can't be more specific than THAT?  Cuz I sure as hell can.  What's holding you back from expressing these critical details that are so widely known everywhere else in the world?

Folks. we are talking about a bloodline.  One whose member families occupy ALL 13 bloodlines of the Illuminati, and additionally occupy ALL of the "private" shareholder owners of the so-called "private banks".  We are talking about a global central banking cartel, whose history dates to the days of PETRA, and which is now and has always been chaired by the house of Rothschild (assumed name meaning "red shield", real name Bauer).

Many refer to this bloodline as the "synagogue of satan".  This is not to say that all members of the bloodline are assholes.  Certainly there are plenty who are not genocidal zionists.  Jews for Jesus is a great example.

Learn folks about the Edomite bloodline, descendants of Esau brother of Jacob (and not Jacob as they so falsely claim, Rev 2:9 and 3:9).



Brixton Guns's picture

Really now.  Im not the one hurling insults.  Insults are used as a denial tactic by those who cannot debate politely, factually, and rationally.  So seriously, who's the idiot?  Thanks for sharing.  Your comment is duly noted.


Peter Pan's picture

George, you are only half right.

The American people have a fifty per cent share in the Federal Reserve.

They own the lability side while the banks own the asset side of the ledger.

Hope this clears things up for you.

Seriously though, if the FED being private is an issue, how do you think people will feel when one day they discover that America's defence forces are really just a private army that is paid for by the people but controlled by others?

Wakanda's picture

Another great article GW!  Thanks!

Bringin It's picture

Great indeed, but George (W ^Z) needs the opportunity to repost because all the eyeballs went with the latest distraction.

Thanks GW

NuYawkFrankie's picture

I've said it before and I'll say it again:

Americans ain't known as Dumb Yanks for nothing

CH1's picture

Americans ain't known as Dumb Yanks for nothing

No, not dumb, but brainwashed.

They really believe all that God Bless America crap. (After all, to praise Murika is to praise themselves!)

tony bonn's picture

george - this article was superbly crafted and yet another proof that americans are stupid fucks....most of them still believe the warren report, the 9/11 commission report, and every other lie spewing forth from the nazi wall street oligarchy.

All Risk No Reward's picture

The American schooling system is supremely effective at what it was engineered to do...  it is just that most folks have no idea what it was engineered to do.

Search "John Taylor Gatto podcast / youtube / book" and "The Ultimate History Lesson" for more information.

This privately controlled Trojan Horse is destroying America, along with the world, with their Debt Money Tyrannical System of covert bond enslavement.

Debt Money Tyranny

justamousesquared's picture

Unless you have done something lately to change the status Quo we are all, everyone of us in this world stupid fucks. If you have not punched a GS banker literally or figuratively lately then we are all stupid fucks.

Forward armchair revolutionaries !!!!

WTFUD's picture

You can lead a horse to water. . . . .
Have come to the conclusion most recently that t's a waste of time preaching, enlightning or at times pleading to folks regarding this skullduggery. They are too stupid or lazy or selfish or a combination of so Fuck Them One and All.
When the SHTF and they look to you in bewilderment for support i will look the other way without one ounce of sympathy.
WHY? Because they are as selfish and as irresponsible as the slimey two cent fucks running the show.

chumbawamba's picture

When the student is ready, the teacher appears.

You got there too soon.  Give it some time.

I am Chumbawamba.

Trampy's picture

Of course almost everyone here (4th Reich) is stupid and apathetic!  Maybe only 1% (any cohort, regardless how high the tower) are truly capable of having original thoughts on a continual basis.

I used to work at a national lab where mostly anyone without a PhD was considered a servant of the technical staff (titled MTS).  Mostly is the operative word there.  Even among the MTS, almost all of them spent their entire career following direction from someone else.  At the fringes there was the "dead wood" who were paid out of the surplus funds obtained from those who produced more than average, but maybe only ~10% were capable, intellectually, of leading a project.  And only ~10% of those had the charisma and drive to go out and get million-dollar projects and then con and cajole their worker bees to produce something that would make the customer happy.  Point is that even at a national lab, most of MTS would be totally lost unless someone with a brain told them what to do, and made sure they did it right.  10% of 10% is 1%, and I ain't a PhD. 

So, hey, instead of letting that make you frustrated, why not look at the bright side?  The peeps who have posted here before me seem to be in the 1%.  Ain't that sweet?

What kind of "maximal utility" (classical econ) can we gain from what's essentially a "divergence" (classic TA lingo)?

Darth Rayne's picture

Thanks for that, you have concisley summed up the entire human race without being offensive or racist.

chumbawamba's picture

It's funnier with racism.

I am Chumbawamba.

juggalo1's picture

The Federal Reserve is a private corporation by definition.  However its governing body, the Board of Governors is selected by Congress and the President.  Its profits are remitted to the Treasury.  Its mandates are for the benefit of the country, and their execution is supervised by the government, which has authority to change mandates or the officers in charge of executing them.  All the recent vitriol regarding central banking and fiat currency are most amusing.  The fact that this article would omit these points shows it is written from a biased perspective.

involuntarilybirthed's picture

Where does the Fed get money to pay for its operating expenses?  

michael___c's picture

You must be on the Fed payroll, which maybe feels good for now. But you will never be part of the 1%. You will always be part of the 99% with the rest of us. The real choice has more to do with whether you are also going to be a liar and a fool.

PeakOil's picture

Sure, sure biased, ok. And the country does benefit - ostensibly. But see the bigger picture. The financial heroin the Fed and central bankers worldwide supply to their respective governments more greatly benefits other powers. Those who remain in the shadows. The concentrated transnational and interlocking nexus of corporate control by a relatively infintesimal few. As predicted, governments and peoples have long-ago become debt-slaves to those that conjure money and credit into existence.

WTFUD's picture

"America is overwhelmed by supremely stupid sheeples"
Lets hold that thought for a second.
In their defence a vast sum of resources has been invested in maintaining that status quo!

Son of Loki's picture

Your articles are great George. Thanks!

proLiberty's picture

The Federal Reserve operates fully to the advantage of its shareholders and only accommodates the federal government to the extent it needs to in order to keep the public mirage running smoothly. Politicians need the Federal Reserve to function because it enables their profligate spending way in excess of tax revenue, mainly because the Federal Reserve buys so much of the debt of the US Treasury.

philosophers bone's picture

Give us a break.  Just like the private stock exchanges and the "self-regulatory organizations" which purport to protect the public interest.  A failed model. 

philosophers bone's picture

Sorry ProL, thought I was replying to Juggalo1 below.

Winston Smith 2009's picture

Wanna' get even angrier?  Watch this documentary if you haven't already:

FRONTLINE investigates why Wall Street's leaders have escaped prosecution for any fraud related to the sale of bad mortgages


pndr4495's picture

In a meeting with merchants and bankers at the British Board of Trade, members asked Franklin how the American Colonies managed to collect enough money to support their poor.   Franklin replied, "That is simple.   In the Colonies, we issue our own money.   It is called Colonial Scrip.   We issue it in proper proportion to the demands of trade and industry to make the products pass easily from the producers to the consumers.   In this manner, creating for ourselves our own paper money, we control its purchasing power, and we have no interest to pay to no one." Both quotes from Charles Binderup, Ibid.   "It passed through no banker's hands, but was loaned to the people direct, thus saving banking toll and banking restriction of volume; nor are there any panics or fluctuations recorded.   Thomas Powell, M.P., of England, who had acted as governor and commander-in-chief of all provinces, in a book written by him in 1768, says in regard to this colonial system of money: 'I will venture to say that there never was a wiser or better measure, never one better calculated to serve the uses of an increasing country, and never was a measure more steadily pursued or more faithfully executed for forty years together than the loan office in Pennsylvania, formed and administered by the assembly of the province.'" Samuel Leavitt, Our Money Wars, 1894.   " ...and we have no interest to pay to no one. "  IMHO this is what caused The Revolutionary War. The Bank of England wanted to control the resources of the vast new territory via the interest charged on lending privately issued currency. Der Rott Schild achieved what it set out to achieve.

chumbawamba's picture

Excellent excerpts.  And nice research.  How'd you come across this?

Thank you.


Winston Smith 2009's picture

"Everyone Knows that the Federal Reserve Banks Are PRIVATE … Except the American People"

The "American People" unfortunately don't know much about anything of major national importance.  That's the problem.

ebworthen's picture

"But...but...it has 'Federal' in the name...?"

I'd wager that even if you could educate 100% of the U.S. population that the FED is a private corporation working against the interests of the people and for the benefit of banks and corporations, 50% wouldn't care.

Darth Rayne's picture

I'd suggest that 99% of people would not understand.

As one of the 1%, I find myself to be unambitous. I think of myself as a man of simple needs.

However, things change and I am now looking at ways to increase my wealth such that I am no longer an Economic Slave. I am expecting some massive changes or 'large corrections' and I am positioning myself such that the coming once in a hundred years wealth transfer will benefit me greatly.

Thanks to all ZH ers for their points of view.

I don't mind being wrong.

Paraphrasing from Another, 'Don't think of it as being right or wrong, think of yourself as being observant.'

Any of the 99% feel free to down arrow me.

Any of the 1%, feel free to remain anon.

I will be up arrowing myself. :-)

chumbawamba's picture

Having wealth certainly facilitates a comfortable lifestyle, but it doesn't make you necessarily free.  You might have influence over certain people that greases the skids of your life, but ultimately your assets are at the whim of the system.

To be truly free you want to establish a private express trust and put all your wealth in the trust.  Now, your wealth belongs to a private entity outside the laws of the United States, i.e. not subject to their whims.  There's more to it, of course, but that's the gist of it.

Investigate trusts, young man.

I am Chumbawamba.

Trampy's picture

and I am positioning myself such that the coming once in a hundred years wealth transfer will benefit me greatly.

With all due respect, when the bubble bursts, how many people are you willing to kill to defend your great wealth from the hungry masses?

P.S. My post here came up with the same 1% you mention.  By saying maximal utility, I was deliberately broadening the scope to go way beyond  the "filthy lucre" that seems so important to you. 

hidingfromhelis's picture

As long as my package gets to the right place in a timely manner and intact, I'm in the 50% that doesn't care.  Wait, are we talking about the same company?  

Only 50% is optimistic.

Uncle Remus's picture

No. Otherwise the "Sorry we missed you" note would on a freshly-minted twenty.

DEVILDOG's picture

America is overwhelmed by supremely stupid sheeples.